Can we transfer money from credit card?

Yes, but not in the usual bank-to-bank way.

And it almost always comes with extra cost.

What “money transfer from credit card” really means

Credit cards are made for spending, not sending money.

So when money is “transferred” from a credit card, it usually means one of these:

• Cash withdrawal from ATM
• Credit card to bank transfer (via special facility)
• Wallet-based transfer (now mostly restricted)

None of these are free. All are treated as borrowing.

Credit card to bank account transfer

Some banks allow transferring money from a credit card directly to a bank account.

This is often called:

• Card to bank transfer
• Credit card fund transfer
• Insta cash or quick cash

Behind the scenes, it is treated like a cash advance.

How this transfer works

The flow is simple:

• Amount is moved from credit card limit
• Money reaches the bank account
• Interest starts immediately
• Fees are added

There is no interest-free period here.

That’s the big difference.

Charges involved in transferring money

This is where people get surprised.

Usually included:

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

Even if the amount feels small, the cost grows daily until repaid.

Can UPI be used to transfer money from credit card?

Generally, no.

UPI works mainly with bank accounts.

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

Some limited merchant payments may work, but direct person-to-person transfers usually don’t.

Different rails. Different rules.

Why banks make this expensive

Quick tip. This isn’t accidental.

Banks price these transfers high because:

• Risk is higher
• No asset is created
• Repayment depends fully on discipline

High cost discourages casual use.

Better alternatives to consider

Before transferring money from a credit card, consider:

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

Most alternatives cost less over time.

When transferring money might make sense

Very limited cases.

• Immediate emergency
• No access to bank funds
• Clear repayment plan

Even then, repayment should be fast.

The shorter the time, the lower the damage.

FAQ

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

Yes, if the bank offers this feature.

Is credit card money transfer interest-free?

No, interest starts immediately.

Does money transfer affect credit score?

It can, due to higher utilisation and risk signals.

In short

Money can be transferred from a credit card.

It is treated as borrowing, not payment.

Cost is high. Use carefully.

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