How To Transfer Money From Credit Card To Bank Account Without Any Charges

Ways To Transfer Money From Credit Card To Bank Account

In general, there are mainly three ways to send or online money transfer from any credit card to any bank account.
  • Withdraw money from ATM
  • Send or transfer using Paytm payments bank
  • Send or transfer using digital wallets

But, before going to discuss all these ways let’s have a look at some basic information about credit cards that we must have to know.

What is a Credit Card?

A credit card is a plastic payment card issued to the users or cardholders, that enables or lets cardholders to pay the merchants for goods and services plus some other agreed charges.

How To Use Credit Card Properly?

The usage of credit cards is increasing in a large number. This massive amount is increased in the past couple of years because a credit card provides safety and convenience.

Remember there are two types of credit cards you can apply. The first is a secured credit card and the other is an unsecured credit card.

The major difference between these two cards is the collateral or deposit. Secured require a deposit whereas unsecured doesn’t require a deposit or collateral.

3 Ways To Use Credit Card Easily

Step-1: Pay Your Due On-Time – Paying your monthly payment is necessary. If you make your monthly payment late will gradually affect your credit score.
Late Payment will lead to the unnecessary occurrence of high-interest charges.

Step-2: Avoid Overspending – Purchase things that are necessary and affordable, because spending on the thing that is not affordable will affect your budget.

Step-3: Always Keep Your Credit Limit Low – Low credit utilization ratio(ratio between your total balance and your total credit limit on all cards) favorites good credit score, Whereas a high ratio leads to a negative impact on the credit score. Your credit utilization ratio should be less than 30%.

How Credit Card Works?

Firstly the customer or cardholder presents a card to the merchant for the purchase of goods and services. After that, the card is entered or swiped into the point of sale software. Then through the payment processing network, the processor sends out for authorization. After that, the issuing bank approves or declines the payment or transaction as per the funds available.

The transaction then passed through the electronic machine or network to the processor and then at the merchant location an approval code is delivered. The issuing bank then sends the amount of money used for the purchase that was made. This whole process is completed in a just fraction of seconds, in the end, the merchant gets the sum of money deposited in his or her account and finally, the issuing bank sends the bill to the cardholder.