Can I transfer money from credit card to bank account?

Yes, but it’s treated like borrowing cash and it comes at a cost.

It works. Just not the way most people expect.

What this transfer actually means

Credit cards are not made to send money like bank accounts.

So when money is moved from a credit card to a bank account, it is usually classified as:

• Cash advance
• Card-to-bank fund transfer
• Quick cash facility

Different names. Same idea.

Borrowed money, instantly.

How credit card to bank transfer works

Here’s the usual flow:

• Amount is taken from available credit limit
• Money is credited to the bank account
• Interest starts immediately
• Fees are added upfront or later

There is no interest-free period here.

That’s the biggest difference.

Ways money can be transferred

Banks allow this in a few controlled ways:

• Through bank app or net banking
• Via customer care request
• Using special “instant cash” offers

Not all cards support this. Bank rules decide access.

Charges involved in the transfer

This is where people pause.

Common charges include:

• Processing or transfer fee
• High interest rate
• GST on fees and interest

Even if the amount is small, interest adds up daily.

Quietly.

Can UPI be used for this transfer?

Generally, no.

UPI is designed for bank accounts.

Most UPI apps do not allow sending money from a credit card to a bank account.

Some merchant payments may allow cards. Person-to-person transfers usually don’t.

Different rails. Different rules.

Why banks price this so high

Quick tip. This isn’t accidental.

Banks keep costs high because:

• Risk is higher than normal spending
• No asset or purchase is created
• Repayment depends fully on discipline

High cost discourages frequent use.

Better alternatives to consider

Before transferring money from a credit card, consider:

• Using savings account or UPI
• Short-term personal loan
• EMI conversion on card spends
• Emergency fund

Most of these cost less over time.

When transferring money might make sense

Very limited situations.

• Medical emergency
• No access to bank funds
• Clear and quick repayment plan

Even then, speed of repayment matters.

The faster it’s repaid, the less damage it does.

FAQ

Can money be transferred directly from credit card to bank account?

Yes, if the bank offers this facility.

Is credit card to bank transfer interest-free?

No, interest starts immediately.

Does this affect credit score?

It can, due to higher utilisation and risk signals.

In short

Money can be transferred from credit card to bank account.

It is treated as cash borrowing.

Costs are high. Use carefully.

Still unsure whether a credit card transfer is the right move right now?