128443Looking for health insurance? Treatment cost of these maladies will not be covered!

You can transfer money from your credit card to your bank account, but it has both advantages and disadvantages. You can do a direct transfer. Many banks allow you to directly transfer money from your credit card to your bank account through their banking app or website. Note that different banks may impose different daily transfer limits, so check with your bank for details.

You can also transfer money using Net Banking. If your bank doesn’t offer net banking services, log in to your account, go to the ‘Credit Card’ section, choose the ‘Transfer’ option, enter the amount you want to transfer to your bank account, follow the instructions, and complete the transaction.

Another way to transfer money is through a phone call, some credit card companies offer fund transfer via a phone call. You’ll need to provide necessary details to the credit card company. And then you can request for fund transfer. After confirming the amount, you can proceed with the transfer process.

Now, for the last method, you can fill out a cheque. Typically, credit card companies don’t provide chequebooks; you’ll need to request one. This method is known as ‘cheque to self.’ Write ‘self’ as the payee on the cheque, include other required information, and deposit it in your bank branch. and once cleared, the money will be transferred to your account.

While using a credit card to transfer funds can fulfil your needs in emergencies, it has some drawbacks that you should be aware of. The primary purpose of a credit card is direct payments. And frequent fund transfers may hinder its intended use of shopping and earning of reward points.

Transfer of funds from credit card entails a processing fee, typically 1-5% of the value. Apart from this, the interest begins to accrue immediately on the funds withdrawn.

One more thing is that if the usage of the credit card exceeds a limit, the Income Tax Department can scrutinise your transactions. Information about annual spending exceeding 2 lakh rupees with a bank credit card is disclosed to the IT Department. Frequent transfer of money may attract the attention of tax authorities.

Transferring funds in this way to your bank account will eat up a significant portion of the credit limit. It will be shown as cash withdrawals. As credit card bill rises, the interest on dues would also rise. Any payment default can harm your credit score and impact your credit history. It will make it challenging for you to get loans in the future.

Therefore, it’s okay to transfer funds in emergencies, but making it a habit is not advisable. Excessive transfers like this can put in you trouble, so using a credit card prudently is essential