How to Transfer Money from Credit Card to Bank Account (2026 Guide)

Here are some of the online methods of transferring money from credit card to bank account:

Bank transfer using internet banking

1. Visit the bank website
2. Use the login credentials to log into the credit card account
3. Select the transfer option
4. Enter the amount to be transferred
5. Fill in the required information in the respective application form
6. Complete the application as per the instruction given on the website

E-wallet

1. Register for the preferred e-wallet
2. Open the e-wallet application
3. Go to the ‘Passport’ option
4. From the available options, select 'Send money to bank'
5. From the menu select the ‘Transfer’ option
6. Enter the required details, such as:
7. Amount to be transferred
8. Account number of the beneficiary
9. IFSC details
10. To initiate the fund transfer, click on ‘Send’ button

Offline Methods

ATM Cash Advance

1. Withdraw money from an ATM using your credit card
2. Transfer the selected fund by depositing the amount to bank branch

Cheque

1. While writing the cheque, specify the payee as ‘Self’
2. Fill in the cheque with the required information
3. Deposit the amount to the local branch
4. After comleting the process, the amount will be transferred from the credit card to the bank account.

Phone call

1. Call to your credit card company
2. Request fund transfer
3. Verify the amount to be transferred
4. Provide the necessary details
5. Follow the other instructions to complete the process of fund transfer from credit card to bank account

Pros & Cons of Transferring Money From Your Credit Card to Bank Account

Transferring Money From Your Credit Card to Bank Account option provides a convenient solution. However, this convenience often comes at a cost. It's important to be aware of the potential for high fees, immediate interest charges, and the possible impact on your credit score. Understanding both the advantages and disadvantages is key to deciding if this financial move is right for you.  

Advantages

The below-listed are some of the advantages of transferring money from a credit card to a bank account:

1. Instant Liquidity: Immediate access to funds during medical or travel emergencies.
2. No Approval Wait: Unlike personal loans, you don't need document verification.

Disadvantages

The below-listed are some of the disadvantages of transferring money from a credit card to a bank account:

1. High Costs: Interest rates can range from 30% to 45% per annum.
2. No Interest-Free Period: Unlike shopping, you pay interest from the moment you withdraw.
3. Credit Score Risk: High utilization ratio lowers your credit score.

Factors to Consider Before Transferring Cash from Credit Card to Bank Account

When contemplating a cash transfer from your credit card to your bank account, it is crucial to assess several key factors:

• Processing Fee: usually 2.5% of the transaction amount (Min ₹500).
• Available Cash Limit: This is usually only 20-40% of your total credit limit.
• Alternative Options: Have you checked if you are eligible for a Personal Loan? (Interest rates are often 50% lower than cash advances).

What Are the Alternative Options to Get Cash?

Here are some alternative options other than fund transfer from credit card to bank account if you need access to cash:

1. Personal loans are offered by the banks or other financial institutions at lower rates than credit card cash advance.
2. Salary advance options can be a more economical way to access immediate funds.
3. To cover your temporary cash flow needs try using your savings over credit card cash advance.

Consider other financial resources, such as savings, emergency funds, or low-interest loans, before opting for a credit card cash transfer. Evaluate options that may offer better financial terms. If uncertain about the terms or fees associated with cash transfers, reach out to your credit card issuer's customer support. Clarify any concerns to ensure transparency and avoid unexpected charges.