How to Transfer Money from a Credit Card
Credit cards are not only useful for shopping and bill payments — they can also be used to transfer money when you’re in urgent need. Whether it’s sending funds to a bank account or topping up a digital wallet, understanding how to transfer money from a credit card can be extremely helpful. In this article, we’ll explain the different methods, benefits, and precautions to take while transferring money from your credit card.
Why Transfer Money from a Credit Card?
There are various situations where transferring money from a credit card becomes necessary, such as:
- Emergency cash needs
- Paying someone who doesn’t accept card payments
- Making bank payments when account balance is low
- But keep in mind — credit card money transfers often come with fees and interest rates, so they should be used wisely.
Methods to Transfer Money from a Credit Card
Here are the most common ways to transfer money from a credit card:
1. Using Mobile Wallets (e.g., Mobikwik, Paytm)
Digital wallets allow you to load money using your credit card and then transfer it to a bank account.
Steps:
- Download and open a wallet app like Mobikwik or Paytm
- Go to Add Money and enter the amount
- Choose Credit Card as your payment option
- After adding money, go to Transfer to Bank
- Enter the bank account details and confirm the transfer
Note: Some wallets charge a small fee (2%–3%) for credit card to bank transfers.
2. Bank Balance Transfer Facility
Some banks allow you to transfer money from your credit card directly to a bank account as a part of their balance transfer or cash advance services.
Steps:
- Log in to your credit card net banking.
- Look for the Balance Transfer or Cash Advance option.
- Enter the destination bank account and amount.
- Confirm and proceed with OTP verification.
Note: Cash advances attract high-interest rates and no interest-free period, so check terms carefully.
3. Third-Party Platforms (like Cred, Instamojo, etc.)
Some third-party apps offer services where you can use a credit card to transfer funds.
Steps:
- Register on a trusted platform (like Cred if supported)
- Enter card and recipient bank account details
- Complete the transaction after OTP verification
- Always ensure the platform is secure and RBI-compliant.
Important Tips and Precautions
Check Charges: Always review processing fees and interest rates before transferring.
Avoid Frequent Transfers: Repeated usage can impact your credit score and raise debt.
Monitor Credit Limit: Ensure you stay within your credit limit to avoid penalties.
Pay On Time: Transferred money becomes part of your credit card bill. Clear dues on time to avoid extra charges.
Transferring money from a credit card can be a real lifesaver in emergencies, but it comes at a cost. Whether you use mobile wallets, bank services, or third-party platforms, always be aware of the associated fees and repayment terms. Use this feature responsibly and only when truly needed to maintain healthy financial habits.