Transferring money from your credit card to your bank account is possible in India, but it’s not always straightforward. Here’s how you can do it, with all the methods explained in simple terms.
1. Cash Advance (ATM Withdrawal)
A cash advance means taking cash from your credit card.
- How it works: You can take money from an ATM or bank using your credit card and then deposit it into your bank account.
- Fees: There are fees of 2.5% to 3% for withdrawing cash, and you will pay high interest rates (often 2.5% to 3% per month).
- How to do it: Go to an ATM, withdraw cash, and then deposit it into your bank account.
Important: Interest starts immediately after you withdraw the money, and it can add up quickly.
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2. Using Apps like Paytm, Google Pay, or PhonePe
You can use apps like Paytm, Google Pay, or PhonePe to send money from your credit card to your bank account.
- How it works: Link your credit card to the app, send money (to yourself or someone else), and then withdraw the money to your bank.
- Fees: Apps charge 1.5% to 2% fee for credit card payments.
- How to do it: Add money to your app wallet using a credit card, and then transfer it to your bank account.
Important: Transfers might take 1-2 business days.
3. Using Paytm
Paytm allows you to add money to your Paytm wallet using your credit card, and then send the money to your bank account.
- How it works: First, add money to Paytm using your credit card, then transfer the funds to your bank.
- Fees: Paytm charges a 1.75% to 2% fee for credit card payments.
- How to do it: Open Paytm, choose to “Add Money,” select your credit card, and transfer money to your bank account after it’s in your wallet.
Important: Transfers may take 1-2 days to appear in your bank account.
4. Using Services Like Plastiq
Plastiq (or similar services) lets you pay bills using your credit card, and they can send money to your bank account.
- How it works: You pay a bill or send money with your credit card, and the money goes to your bank account.
- Fees: They charge 2.5% to 3% for using a credit card.
- How to do it: Sign up for Plastiq, link your credit card and bank account, and pay the bills.
Important: These services might take a few days to process.
5. Using Money Transfer Services (Like Western Union)
You can use services like Western Union or MoneyGram to transfer money using your credit card.
- How it works: You use your credit card to pay for the transfer, and they send the money directly to your bank.
- Fees: Fees vary, usually 3% to 5%, depending on the transfer amount.
- How to do it: Visit the website or an agent of Western Union, use your credit card to send the money, and provide your bank details.
Important: This might take a few days to complete.
6. Using a Loan or EMI Facility
Some credit card companies offer loan or EMI options where you can take a loan against your credit card and transfer money to your bank account.
- How it works: You apply for a loan or EMI, and they transfer the money directly to your bank.
- Fees and Interest: Loan interest rates are 12% to 36% per year.
- How to do it: Contact your credit card company, apply for the loan, and ask for the money to be transferred to your bank account.
Important: This method is useful for larger amounts, but be aware of high-interest rates.
7. Buy a Money Order
If you can’t find a direct method, you can buy a money order using your credit card and deposit it into your bank account.
- How it works: Buy a money order using your credit card, then deposit it into your bank.
- Fees: You will pay a small fee for the money order, and your credit card company might treat it as a cash advance.
- How to do it: Visit a store or post office that sells money orders, pay with your credit card, and then deposit it into your bank.
Important: Some banks or stores may not accept credit cards for money orders.
Things to Keep in Mind
- High Fees and Interest: Most methods charge fees of 2% to 5%, and interest rates can be very high.
- Repayment: Make sure you can repay the amount quickly to avoid paying too much interest.
- Impact on Credit Score: Using your credit card a lot or making cash advances can hurt your credit score.
Conclusion
There are some ways to transfer money from your credit card to your account in India, but most come with high fees and interest rates. Always be careful with these methods and make sure you understand the costs involved before proceeding.
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