Cash in the bank is a security blanket for many old-timers, but also for a good number of millennials raised by the old-timers. People might hold back on a potentially lucrative investment, or from splurging on something their heart desires on account of anxiety linked to ‘what ifs’. What if they have an emergency and need the money urgently? What if there is a job loss or a pay cut?
However, one need not be hassled or held back from investing all their hard-earned money, because credit cards can actually come to your rescue. You can now transfer money from your credit card to your bank account. Thereafter, it can be used for whatever nail-biting emergency it is that you are fretting over.
So how does one go about doing this? Is there some tedious application process as one would have to go through in the case of getting a loan? Not at all. Here’s how to transfer money from your credit card to your bank account in a few easy steps.
Option 1. Use a mobile app
Step 1 – Compare the transaction fees and transfer timelines offered by different digital wallets. Zero in on the best one offering the quickest transfer timelines and the lowest transaction fees.
Step 2 – Download the mobile app and sign up for your online wallet. The options you can find today include, but are not restricted to Google Pay, Paytm, and MPesa.
Step 3 – Add the required sum to your wallet by paying with your credit card.
Step 4 – Wait. It might take a day or a couple of business days for the money to be transferred. You will already know how long you need to wait because of Step 1.
Step 5 – Once the money is transferred to your mobile wallet, you can transfer it to your bank account.
Option 2. Use some money transfer option
There are a whole host of money transfer options that one can find today. You might already know about these options. These are the options that people use to transfer money to children, parents, or relatives in other countries. An example is the Western Union money transfer. Here is how to transfer money from your credit card to your bank account using the money transfer option.
Step 1 – Open an account. So ideally you will need to have this set up and ready before you find yourself in an emergency.
Step 2 -If and when your emergency does indeed come along, you need to log in to your profile and put in all the ‘receiver details’. In this case, the receiver is your bank account.
Step 3 – Make the payment, which in this case is actually a transfer, using your credit card.
Step 4 – Wait. The transfer should reflect between 24 to 72 hours in most cases.
Option 3. Think outside the box
One could also identify credit products that cater to this very real need for money in the bank that a lot of people have. We have lined up two such options.
You could alternatively use some credit cards as debit cards. For example, the Bajaj Finserv RBL Bank SuperCard offers members the option of using a credit card to withdraw cash from an ATM. If your worry is big-ticket emergencies like hospitalization or sudden travel, especially if you have young children studying in universities overseas, you don’t have to worry. You can even get a loan on your Bajaj Finserv RBL Bank SuperCard at a low rate of interest. You also get 90 days to pay back such a loan. The best part about what this credit card offers is that the loan or ATM withdrawal is instant, and therefore most useful in the case of an emergency.
Some credit cards offer the feature of allowing you to transfer cash directly to your bank account. The facility is called a balance transfer facility, and its primary use is to have one credit card assist with settling the debt on another. At least half a dozen banks offer this convenience on certain credit cards.
Since this page is here to help you, we feel like we should caution you that you are scaling up your debt and piling on interest with this option. As a result, it is best used during an emergency, and not as a regular practice.
It might not be very wise to tie down hard-earned capital in savings accounts with little interest for an emergency that may or may not happen. It is also rather unfortunate to have to inhibit your lifestyle by tying down your money for an emergency that may or may not happen. Use these options to help you tide over any urgent-need-for-cash situations that might arise instead.
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