Want to Transfer Money from Credit Card to Bank Account? Here Are 3 Simple Ways (And What to Watch Out For)

💳 Credit Card to Bank Transfer: A Simple Guide

Transferring money from your credit card to a bank account isn't as straightforward as it seems. Not only do such transfers involve extra fees and higher interest, but they can also impact your credit score if not managed wisely.

Still, if you're in urgent need of funds or looking for ways to make this work, here are the 3 best methods you can try today.

🔄 1. Direct Bank Transfer (If Your Bank Allows It)

Some banks offer a direct money transfer feature via their mobile banking apps or net banking portals. With this option:

• You can transfer funds from your credit card to your savings account.

• However, this feature is not available to all users.

• You may require special approval from your bank, and processing fees will apply.

📝 Pro Tip: Check with your bank first. Banks like ICICI, HDFC, and Axis may have this facility on select cards.

🏧 2. Withdraw Cash from ATM, Then Deposit

This is the most common and accessible method:

• Use your credit card to withdraw cash from an ATM.

• Then, deposit the cash into your bank account.

⚠️ Drawbacks:

• Cash advances attract immediate interest — there is no interest-free period.

• ATM withdrawals also incur a cash advance fee, which can go up to 2.5% or more.

So, use this method only when absolutely necessary.

💼 3. Use a Third-Party App or Wallet

Apps like Paytm, Mobikwik, or Cred allow you to:

• Load money using your credit card,

• Then transfer that wallet balance to your bank account.

📌 But be careful:

• These platforms often charge 2–4% in transaction fees.

• Make sure the service is reliable and RBI-authorized.

⚠️ Things to Keep in Mind

Before transferring money from your credit card to a bank account, remember:

✅ Interest Rates Are High
Credit card transfers typically incur higher interest than standard purchases.

✅ No Interest-Free Period
Cash advances and transfers start accruing interest from day one.

✅ Credit Score Impact
Frequent or high-limit transfers can affect your credit utilization ratio, reducing your credit score.

✅ Always Repay Quickly
Plan to repay the transferred amount quickly to avoid hefty interest accumulation.

📊 Sample Interest Rates by Card

Credit Card Name	Monthly Interest Rate	Annual APR
Axis Bank ACE Credit Card	3.6%	52.86%
SBI Card ELITE	3.50%	42%
HDFC Regalia Credit Card	3.6%	43.2%
Flipkart Axis Bank Credit Card	3.4%	49.36%
Amazon Pay ICICI Credit Card	3.5% to 3.8%	42% to 45.6%
HDFC Millennia Credit Card	3.6%	43.2%
Cashback SBI Credit Card	3.75%	45%
HSBC Cashback Credit Card	3.50%	42%
HDFC Diners Club Privilege	3.6%	43.2%

Source: PolicyBazaar (April 2025)

🔚 Final Thoughts

Yes, you can transfer money from your credit card to your bank account, but it’s not always the smartest move — unless you understand the charges and consequences. If you're short on funds, always compare your options for personal loans or EMIs, which may turn out cheaper in the long run.