A credit card is a financial instrument you can use for purchases and pay later. Credit cards are convenient as you do not need to carry large amounts of cash. Also, credit card owners do not incur losses if their cards are fraudulently used. This means it is safe to use credit cards. You can send money from a credit card to a bank account in situations where certain transactions like stocks, money orders, and mortgage payments cannot be made using credit cards.
If you would like to know how to send money from a credit card to a bank account, below are options to choose from and steps you can follow to transfer money from a credit card to a bank account. Sometimes there are restrictions from banks on how to send money from credit card to bank account.
In cases where you are not restricted by your bank to add money from credit card to bank account , you can consider the following.
Internet Banking
This is the simplest method of add money credit card to bank account. You can make the direct transfer by
- Opening your bank’s website.
- logging into your credit card account
- Selecting the transfer option
- Entering the desired amount.
- Providing required details and
- Completing transaction following the prompts.
Phone calls
You can make a phone call to transfer money from credit card to bank account instantly if you don’t have internet access. You simply need to;
- request a fund transfer by calling your credit card company.
- Confirm the amount you want to be transferred.
- Give required details like a bank account number.
- Complete transaction as prompted.
Digital- wallets
Indirect transfer from a credit card to a bank account can be made with e-wallets like payzapp and Paytm. These are linked to your bank account.
When there are restrictions from your bank to send money from your credit card to the bank, you may consider the options below.
Cheques
Cheques are an option to use when there are restrictions when add money to bank account from credit card. Take the following steps.
- Write the cheque to ‘self’.
- Deposit a cheque at your local bank to complete the process.
ATM cash advance.
When using ATM to add money from a credit card to a bank account, do the following.
- Use your credit card to withdraw cash at your ATM.
- Deposit the money to your bank account.
Even though using credit cards provides ready money at all times, keep it in mind that sending money from credit card to bank account may come with extra cost. The amount charged differs with banks. Some banks have good interest rates and cashback deals. Other banks may allow interest-free cash withdrawal from ATMs and little or no maintenance charges. Maintaining a good credit score is important to reduce interest rates. You can achieve this by ensuring bills are paid promptly always and avoiding new credit applications except when necessary.
You can choose any of the options and steps to send money from a credit card to a bank account.