How to Balance Transfer from a Credit Card?

Credit cards come handy in a variety of ways. They allow you easy access to money when you need it most. And can even earn you extra advantages and benefits - read - rewards and cashbacks! So, be it any financial emergency or realizing your dreams, credit cards can do so much for you. And that’s why, in this age and time, having a credit card is not just a privilege, but a necessity. However, you need to be careful while using credit cards, or you can end up with massive debt. The best way to avoid such a situation is using the credit card to bank transfer facility.

 

Credit card to bank transfer

Now if you are wondering, can I transfer money from credit card to bank account, the answer is: yes.

As the name implies, it is a facility to transfer the balance amount from one credit card to another. A money transfer credit card allows you to make such a transfer. You can choose to opt for credit card balance transfer if your rate of interest on one credit card is high. In such a scenario, transferring the money to another credit card seems like a fair deal. It also buys you some time to arrange for the required amount to clear off your dues on the credit card.

Balance transfer of credit cards has its own benefits. Here are a few:

 

  • Manage Your Money:

Sending money from credit card to bank account comes with a lot of perks. An important financial management tool, credit card balance transfer allows you to avoid high interest rates and helps buy some time for the debt payoff. This is especially helpful, when you have multiple credit cards.

Different credit cards, means different repayment dates and different debt amounts. With balance transfer from credit card, you can consolidate all these debts by transferring the pending payments to a single credit card of your choice. And then repay these at a more convenient time. This not only saves you interest rates but also late charges.

 

  • Avail of better credit terms:

An important reason to consider a money transfer credit card is unfavourable terms and conditions on one or more of your existing credit cards. High service and default fees, short payback and grace periods could be some factors why people could opt to close the existing accounts and transfer money from a credit card. You can balance transfer from a credit card to another one that comes with better rewards and offers better savings options.

 

  • Earn Lucrative Rewards:

Most banks offer you several additional benefits when you opt for a credit card to bank transfer. Air ticket discounts, reward points, cashbacks… it could be raining offers for you!

Apart from that, credit card transfer to a bank account comes with some extra perks like instant transfer, less documentation and even paperless money remittance. You can even benefit from your bank’s no interest period, if it offers one.

 

  • Payback at a Lower Interest Rate:

But one factor that makes the balance transfer from credit card an extremely popular choice is the convenience to pay at a lower interest rate. So, choosing a new credit card that offers a lower interest rate is your best bet to decrease the debt, making the repayment cheaper and easier.

But with all these wonderful benefits, you must keep in mind an important factor: your credit score and how balance transfer from credit impacts it.

Whenever you opt to transfer money from a credit card, it is imperative to have a good credit score. Although the interest rate may be lower, you have to pay the dues sooner or later. And if you fail to pay your EMIs or any other bank loans within the stipulated time or your credit history shows any inconsistency in your payment records, then it will impact your credit score negatively. A lower credit score could make you ineligible for balance transfer from credit card.

 

How to Transfer Money from Credit Card to Bank Account Online?

You can transfer money from your credit card to your Kotak Mahindra Credit Card using netbanking or mobile banking in simple steps.

Follow these instructions if you are using netbanking:

  • Visit www.kotak.com
  • Tap “Netbanking” option
  • In the User ID field, key in your CRN
  • After this, you can either key in your Password, or choose to generate an online password by clicking on “Get Netbanking Password Online”
  • Next, tap on “Credit Card”
  • Choose “Balance Transfer”

In case you wish to use your mobile banking facility, you can follow these steps:

  • Login to your Kotak mobile banking app
  • Tap on “Credit Card”
  • Choose “Balance Transfer”

A direct credit card to bank account transfer does not work. And although this is not a common practice, using intermediaries to transfer money from a credit card can be possible. You can use your BHIM Kotak Pay account to transfer money from credit card to your UPI wallet. Once that is done, you can transfer the amount to your Kotak Mahindra Bank Account. It is advisable to be careful while making such transactions.

 

How to Transfer Money from Credit Card to Bank Account Offline?

At present, offline balance transfer from credit card to bank account is not available. You could visit your bank’s branch or call them for more information.

 

Key Points to Consider Before Transferring Money from Credit Card to Bank Account:

Credit card to bank account transfer comes with a lot of advantages. However, there are a few factors that you must bear in mind.

 

  • Your debt remains the same

You may avail of the balance transfer of credit card at a lower interest rate. But even then the total debt amount will not change and must be repaid. Also, it must be done in the given time to avoid any financial complications. It cannot be emphasized enough that debt repayment must be given due importance in this process.

 

  • Transaction fee is applicable

Second thing to keep in mind is that balance transfer from credit card comes at a charge. You have to pay a certain amount as a transaction fee for the balance transfer of the credit card. This transaction fee varies from one bank to another. Further, it also depends on the amount to be transferred.

 

So while credit card balance transfer is an advantageous way to keep your finances well-managed, it is crucial to not get trapped in a debt cycle instead of staying on top of it.

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Frequently Asked Questions

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Can I transfer money from my credit card to my bank account?

If you intend to balance transfer from credit card to bank account directly,

 then it is not possible, but you can avail the service of intermediaries like BHIM Kotak Pay account to transfer money from your credit card to UPI wallet, which can be further transferred to your Kotak Bank Account.

Can I transfer money from my credit card to my bank account?

If you intend to balance transfer from credit card to bank account directly,

 then it is not possible, but you can avail the service of intermediaries like BHIM Kotak Pay account to transfer money from your credit card to UPI wallet, which can be further transferred to your Kotak Bank Account.

Will I know when I should avail a credit card balance transfer facility?

You can avail balance transfer from credit card if a high interest rate is charged on your present credit card balance.

If you transfer the balance to your Kotak Mahindra Credit Card, you will get a 90 days’ interest free period. However, a balance transfer on credit card is possible only if your card was issued over 6 months ago.

Will I know when I should avail a credit card balance transfer facility?

You can avail balance transfer from credit card if a high interest rate is charged on your present credit card balance.

If you transfer the balance to your Kotak Mahindra Credit Card, you will get a 90 days’ interest free period. However, a balance transfer on credit card is possible only if your card was issued over 6 months ago.

How much can I transfer from one credit card to the new one?

Generally, the amount available for balance transfer on credit cards depends on your existing credit limit.

Kotak Bank allows you to transfer a minimum of 2500 and a maximum of 75% of your credit limit. However, this is not a free service. The bank takes a fee of INR 349 for every INR 10,000 or part, plus GST.

How much can I transfer from one credit card to the new one?

Generally, the amount available for balance transfer on credit cards depends on your existing credit limit.

Kotak Bank allows you to transfer a minimum of 2500 and a maximum of 75% of your credit limit. However, this is not a free service. The bank takes a fee of INR 349 for every INR 10,000 or part, plus GST.

Is balance transfer cheaper than taking loans?

Balance transfer from a credit card is helpful if you need to repay smaller amounts and can do so in shorter time periods. 

In such cases, balance transfer is better than borrowing a loan. It helps reduce your principal amount. However, the bank charges a nominal fee and starts charging you interest if you cross the allotted period.

Is balance transfer cheaper than taking loans?

Balance transfer from a credit card is helpful if you need to repay smaller amounts and can do so in shorter time periods.

In such cases, balance transfer is better than borrowing a loan. It helps reduce your principal amount. However, the bank charges a nominal fee and starts charging you interest if you cross the allotted period.

Is it profitable to transfer money to my bank account?

Transferring money from a credit card that charges a higher interest rate to one that has a lower interest rate is generally useful.

It helps in repaying your existing debts, as well as supports you to manage your finances better. Instant transfer facility and less documentation make the process easier as well.

How long does it take for a transaction to happen successfully?

Balance transfer from credit card is a simple and fast process. 

Here, at Kotak Mahindra Bank, the balance transfer of credit card facility takes between 3 to 5 working days from request submission. It is important to note that the facility depends on the internal approval and available credit limit.

Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.

Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.