How to transfer money from credit card to bank account Canada?

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Short Answer

You can transfer your credit card balance into your bank account by drawing funds from ATM and then crediting it to your bank account, do online transfer, draw a cheque or visit your bank branch in person.

Detailed Answer

What is a credit card?

For you to withdraw your money which is your bank account balance, you can use a debit card. Whereas, a credit card is a loan offered to you by your credit card issuer. You are required to make repayments on a monthly basis. Let us explore how to transfer your credit card balance into your bank account.

Methods to transfer credit card balance to bank account

Use an Automated Teller Machine (ATM)

You can use your credit card in an ATM near you, enter your secret Pin and draw the amount required. You can only withdraw an amount lesser than the credit limit. Once cash is withdrawn, you can deposit the funds into your bank account.

Internet Banking

If your credit card can be logged in using an online banking account, then you can log-in into your credit card account using your username and password and then transfer the required funds into your savings or chequing bank account.

Credit Card Cheque

If your credit card is eligible to receive a convenience cheque, then you can apply for the same. You can draw a cheque written to yourself and deposit at your bank.

Visit your branch

You can visit your credit card issuer, withdraw the funds, and then deposit it into your bank account.

Pros of transferring credit card balance to bank account

  • Quick access to money
  • In case of an emergency, you can have easy access to money
  • It will not impact your credit score

Cons of transferring credit card balance to bank account

  • The average credit card rate in Canada is 19.99%, which itself is higher than other loan types, however, taking a cash advance will be charged at an even higher rate.
  • In addition to the high interest rate, a fixed fee will be charged for every draw down.
  • It might lead to a cycle of credit card debt, since you will not have a track of your credit by consolidating your bank account balance and credit card balance.

Transferring money from credit card to bank account

Since the cons outweigh the pros of transferring your credit card balance into your bank account, you can use alternative methods such as taking out a personal loan, using overdraft feature, or borrow from your friends or family.

Tagged With: transfer credit card balancecredit card to bankcredit cardtransfer credit balancebalance transfer canada
Categories: Banking
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