A credit card is a financial tool allotted by the bank with a credit limit. You can make cashless transactions and send money. The primary purpose of a credit card is to use the limit and pay before getting late. You can use a credit card to pay your bills, go shopping, and send money to your family or friends.
Paying bills and shopping is pretty simple, but there’s a different method if you wish to send money using your credit card. So if you haven’t tried it before, here’s how to send money from your credit card.
Send Money Through Credit Card Using Multiple Ways
Even if you obtained a credit card through your bank or credit card online, sending money using no tough challenge. You can send money two ways: from your credit card to a bank account or through a money transfer agent.
Transfer Money from Credit Card to Bank Account
To send money, all you need is the correct bank account details on which you have to send the funds. You can choose multiple options such as an e-wallet, money transfer app, and net banking for money transfer credit cards to a bank account. If you’re sending money over an e-wallet, ensure the bank account is linked with it to receive payments.
Use Money Transfer Providers
Sending money using a credit card via a money transfer provider is hassle-free. Even if you have received a credit card online or offline, you only need to share bank details and country. Once you successfully provide the bank, the money transfer agent will contact the receiver bank to verify the details before receiving the money.
Regular Use Improves Credit Score
Credit Card is an excellent tool to improve your credit score. It improves your credit score if you use it regularly. Sending money, shopping, bill payments, and travel expenses are part of healthy credit history.
If you manage your credit card properly and make repayment on time, it will strengthen your profile even if you already have a healthy credit profile. A solid credit rating or score helps get extra benefits such as quick loan approval, low interest, and more.
2. Credit Card Interest Is Not Always the Same
When using a credit card, you must remember that the interest rates are not always the same. Banks can change the credit card interest rates when: you’re late on payments, your credit score drops, promotional rates end, or you have been using the credit card for more than 12 months. However, banks or credit card issuer companies notify the cardholders before increasing the interest rates.
3. Look Out for Offers & Promotions
Credit cards are fun to use for their attractive offers and promotional rewards. Using attractive rewards on credit cards online, they keep their customers motivated to buy and use more of their credit cards.
Offering interest-free EMIs, food discounts, movies, and cashback programs are part of their marketing strategy. So whenever you’re swiping your credit card because you saw an offer, make sure that the rewards are worth it or beneficial.
4. Cash Withdrawl Charges
Indeed you can use your credit card to withdraw money from ATM, but you have to pay a fee every time you insert and withdraw cash. Banks usually charge 2.5% to 3% on every transaction, which reflects on your card statement. However, the good thing is that you can make five free cash withdrawal transactions monthly in specific locations.
Once you use your limit or go beyond the limit, banks start to charge a fee on every transaction, known as an interchange fee or ATM maintenance charge. The fee is INR 17 per withdrawal.
When transferring money through a credit card, you must know how much it will impact your credit score and interest rates. Whatever method you try to send money using your online credit card, you’ll have to pay a certain fee, so it’s better to consult with your bank first if they have more or better options.