7 Steps to Transfer Money from Credit Card to Bank Account

In this blog, we are going to solve the problem of Credit Card to Bank account transfer at the lowest cost possible. This is a detailed explanation of how to transfer money from a Credit Card to a Bank Account. This method includes third-party applications like PhonePe, Mobikwik, etc. and these platforms have different fees accordingly. Till now, Mobikwik charges the lowest fee and transfers money instantly after the first payment to the account. Let’s talk about the method in detail below

Why do we need a Credit Card?

Credit cards offer many benefits essential for personal and financial management. They offer convenience and security, are widely accepted, and simplify transactions. Advanced security features such as fraud protection and the ability to dispute charges ensure secure transactions. Credit cards also help build and improve credit scores, as responsible use establishes a positive credit history. Regular, on-time payments can significantly increase your credit score, making it easier to obtain loans and favorable interest rates in the future.

Additionally, credit cards offer various rewards and benefits, such as cashback, and points for purchases, which can be redeemed for travel, merchandise, or statement credits. They also provide access to special offers, discounts, and special events. In emergencies, credit cards act as a financial safety net, providing access to credit when immediate cash is not available. They assist with expense tracking and management through detailed monthly statements and expense categorization tools. Additionally, many credit cards come with purchase protection features like extended warranties and insurance, which add extra value and peace of mind to your spending.

How to transfer Money from a Credit Card to a Bank Account?

Now there are several methods to transfer from a credit card to a bank account like NetBanking, Bank Applications, Fund transfer over call and so many more, even some cards provide ATM withdrawals till a certain limit.

Now we are not going to talk about that method, this time the method of transfer is different. It is the same process for both the applications PhonePe and Mobikwik.

Step 1: Download the Application

In this step, you need to download the application from the App/Play Store. The name of the app is PhonePe. We’ll do the process with PhonePe, and the same is the process with Mobikwik.

Step 2: Register

In this step, you need to open the application register with your phone number and get your KYC done within a few minutes. After the registration, you’ll see this type of interface.

Step 3: Find the Rent Option

In the image below, you can see the “Rent” Option in the Recharge and Pay Bills section, you need to find the Rent section and then click on the Rent option, and you’ll see the interface shared below.

Step 4: Choose the Suitable option

After clicking on the Rent option, you’ll see the below interface, from there select the Home/Shop Rent option.

Step 5: Enter the Required Details.

In this step, you need to enter the required details like the amount and name of the owner. Here, I’m using Demo, the minimum amount you can add is INR 1000, and add the name by which you want to remember the details. After continuing, you need to add more details like the owner’s name or your own name if you’re using another bank account in which you want to transfer money.

After that you need to select the phone number or UPI to which you want to transfer the amount, I personally prefer a UPI ID. After that you need to Enter your PAN card number, it’ll take less than 1 minute if you’re using the correct PAN card, and BOOM!

Step 6: Transfer the Funds

In this step, you need to go to Rent again and then select the added user. Add your credit card details by choosing the card option, entering the number and CVV, then verify the OTP and you’ll transfer the amount to your bank account or the provided UPI ID which you added in the process.

This is the complete process by which you can transfer the amount from your Credit Card to your Bank Account with very less charges. Keep one thing in mind this process can be done once per month on one credit card according to the government policy, so do it accordingly.