How to Transfer Money From Credit Card to Bank Account Without Any Charges

When credit cards were first introduced, they changed the financing landscape. A large portion of society found plastic money a boon.

Many people find that using the best Indian credit card is a smart way to spend money. This is due to the spend now, pay later’ mantra and the additional benefits such as discounts.

The need for funds is a problem, especially when credit card payments aren’t accepted (credit cards bills). Many people will need to transfer funds from their credit card to a bank account in such situations.

Can I Transfer Funds From a Credit Card To a Bank Account?

Yes, you can.

You can also transfer funds directly to your bank account via an online tool such as Moneygram or Western Union.

You can also choose an indirect option by using an electronic wallet.

Below are a few ways you can accomplish this task.

Three Simple Methods to Transfer Money From Credit Card to Bank Account without Charges

Contrary to popular belief, it doesn’t take a genius tech person to transfer funds. It’s easy and almost always free.

These are the three ways to transfer money from your credit or debit card to your bank account.

Online tools such as Moneygram or Western Union are available.

Through the portals of banks (available to a variety of banks).

Through eWallets

1) Use Online Tools

There are many online tools you can use for transferring funds from your credit card into your bank account. However, you might have to pay a fee or interest for fund transfers.

MoneyGram and Western Union are two of the most trusted and popular portals.

MoneyGram

Moneygram is a trusted service provider in its industry. Moneygram allows users to transfer money across the globe and has over 400 banks worldwide.

It’s easy to use and does not have any regulations regarding the services provided. You only need a MoneyGram account to get started.

How to Use MoneyGram

Follow these steps to transfer money through MoneyGram

  • Open a MoneyGram account by visiting the MoneyGram website. You only need to fill out a few details, and then verify your identity.
  • Once you have successfully logged in to your account, enter the recipient details (including where the money is needed to be transferred)
  • Click on the “Account Deposit” option and enter the amount you wish to transfer.
  • Select ‘credit card as payment method’
  • After verifying your identity, you’ll be able to enter the bank details for the recipient. Enter the details for your bank account.
  • In a matter of minutes, the money will be transferred directly to your bank account.

Western Union

Western Union is the leading online platform for fund transfers. It is trusted worldwide and is considered the best in the business.

You will need to go through the same process as the MoneyGram in order to transfer money via Western Union. You will need to create a free account before you can transfer the money.

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How to Use Western Union

  • Register for a free account and complete all details.
  • Logging in to your account will prompt you to enter the country, delivery method (bank account), and amount to be transferred.
  • Next, enter the details of the bank account into which you want the funds to be transferred.
  • Pay the bill using your credit card. Western Union will take care of the rest.

Consider these Things When Transferring Funds via Online Tools

They are easy to use and offer an easy way to transfer funds. However, there are some things you should keep in mind when using them.

Direct transfer of funds is dependent on many factors including the amount being transferred, the country and currency, as well as the regulations of your bank.

The foreign exchange rate will apply if the money is being transferred between currencies. It can take between one and five business days to transfer the money.

2) Through the Banks’ Portal

Axis Bank, ICICI Bank, and the State Bank of India offer investors the option to transfer funds to their bank accounts.

These are just a few of the banks that allow you to make such transactions.

Axis Bank

You can transfer funds easily with Axis Bank Internet Banking if you have an Axis Bank Credit Card.

Transfers of Rs 500 are allowed. Each three-month period, the user can transfer funds free of charge. You will be charged if the next transaction is not completed within the three-month period.

It is important that you know that interest rates are not applicable if the amount is repaid within six months of the date of transfer.

How do I Transfer Funds?

  • You will need an Axis Bank Net banking account to transfer the funds.
  • Log in to your account. Go to Credit Card > Balance & Payments.
  • Please fill in the details of your bank account and credit card number. 
  • Send the request, and funds will be transferred.

State Bank of India

The State Bank of India, like Axis Bank allows you to transfer funds from your credit cards to your bank account.

You can transfer money to your SBI Card’s account or request it via SMS.

You can repay the transferred funds in two to six months. It is also important to remember that interest will be charged for each month if the amount is not paid within six months.

HSBC

HSBC offers the same services as SBI Bank. You can transfer money online, by contacting them via SMS or visiting the bank in person.

To repay the amount transferred, the bank will offer a term of 3 to 24 months.

3) Through EWallets

We don’t recommend e-wallets as a way to transfer money from your bank account to your credit card.

There are many e-wallets available today that can be used for this purpose. Paytm and Mobiwik are the top e-wallets.

Paytm

Paytm, India’s most widely used transaction app, offers a variety of services including bookings, paying bills, and transferring money.

Paytm wallet can be used to transfer money from your bank account to your credit card. However, you need to have a registered account.

How do I transfer funds?

  • Transfer the amount you need from your credit card into your wallet.
  • After funds have been transferred, you can access your Passbook.
  • You will find the option to ‘Transfer’.
  • Simply enter your bank account information and the money will be transferred.

No Charge

Another Indian financial service provider, Freecharge, offers an e-wallet option to transfer money from your credit cards to your bank accounts.

How do I transfer funds?

  • First, you’ll need to add money to the Freecharge wallet with your credit card. All you have to do is click the “Add or Withdraw” button.
  • Enter your credit card information and send the money to yourself.
  • Next, withdraw your money. You will need to go to the website.
  • Log in to your account, open “My Account Details”, and tap the Balance displayed in your account.
  • Next, click the withdraw button to fill out your bank details.

Things to Consider Before You Transfer Money

Credit limit reduced

Important to remember that your credit limit will decrease automatically when funds are transferred from your credit card. Plan the amount you want to withdraw in advance.

Interest Rates

Many banks offer low interest rates for a short time, but the interest rate increases if you wait to repay the loan. You should repay the amount within a specified time.

Modifications to the Scheme

Last, you should not forget that the rate or scheme you originally availed could change once you use the offer. Before you transfer funds, make sure to read all instructions.

Transfer Money with Ease

We have provided three simple methods to transfer money from your bank account to your credit card. You don’t have to be tech-savvy in order to transfer your money, as I said earlier.

You should carefully choose the best method for you, with no restrictions based on how much you wish to transfer.

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