How to add money from a credit card without charges?

In India, using a credit card to add money to your bank account or digital wallet can often come with fees and charges. However, there are several strategies and methods to avoid these costs legally and efficiently. This blog explores these techniques, helping you to save on fees and manage your finances better.

Understanding Credit Card Charges

Before delving into the ways to avoid charges, it’s essential to understand the typical fees associated with credit card transactions. Generally, these include interest charges, cash advance fees, service charges, and processing fees. Banks and financial institutions levy these fees to cover the risks and administrative costs of credit transactions. Therefore, it’s crucial to be aware of the terms and conditions of your credit card to avoid unexpected expenses.

Read more: Credit card tips for international travel

Using Credit Card to Bank Transfers

Directly transferring money from a credit card to a bank account usually incurs significant charges, often categorised as cash advances. Cash advances attract high interest rates from the date of withdrawal and usually come with an additional transaction fee.

Want a credit card with the lowest joining fees, lowest interest rates, relaxed eligibility criteria and much more? Try the Airtel Axis Bank Credit Card to save up to ₹16,000 even when you spend!

Using Wallets and UPI

Several digital wallets and UPI (Unified Payments Interface) applications allow you to add money using a credit card without any charges. By transferring money from your credit card to the wallet and then transferring it to your bank account, you can avoid direct charges. However, be cautious of the terms, as these offers can change.

Earning Cashback and Reward Points

Another way to mitigate charges is by utilising cashback and reward points offered by credit card companies. Many credit cards provide cashback on transactions or reward points that can be redeemed for statement credits. By maximising these benefits, you can offset the fees associated with money transfers. Ensure to check your credit card’s reward program details to make the most out of your transactions.

Read more: How to avoid interest charges on a credit card?

Leveraging Bank Promotions and Offers

Banks occasionally run promotions that waive off charges on credit card transactions. These promotions can include zero fees on specific types of transfers or additional rewards for using your credit card. Staying updated with your bank’s promotional offers can help you avoid fees. Subscribing to newsletters or setting up alerts for such promotions can ensure you don’t miss out on these opportunities.

Using Business Accounts and Merchant Services

For those who have business accounts or merchant services, transferring money can be more flexible. Business accounts often come with lower fees for transactions, including those made with credit cards. Additionally, some merchant services allow for fee-free transfers as part of their package deals. This method requires setting up a business account and ensuring that your credit card transactions are categorised correctly to avoid personal and business expense mixing.

Balance Transfers and EMI Options

Balance transfer options and EMI (Equated Monthly Instalment) plans are another way to manage credit card expenses. Some banks offer low-interest or zero-interest balance transfers for a specified period, allowing you to move your credit card debt to a different account without incurring high fees. Similarly, converting large credit card transactions into EMIs can help you manage repayments more effectively. However, always review the terms and conditions associated with these options to ensure they align with your financial goals.

Read more: Factors that determine your credit score

Frequently Asked Questions

1. Can I use my credit card to add money to my bank account without any charges?

Yes, it is possible through indirect methods such as using digital wallets or taking advantage of promotional offers by banks and wallet providers.

2. Are there any risks involved in transferring money from a credit card?

Transferring money directly from a credit card can incur high fees and interest charges. Using alternative methods can mitigate these risks, but always ensure you understand the terms and conditions.

3. How can I find out about promotional offers from my bank?

Subscribing to your bank’s newsletter, setting up alerts, and regularly checking your bank’s website or mobile app can keep you informed about promotional offers.

4. Do digital wallets always offer fee-free transfers?

Not always. Digital wallets often have promotional periods where they waive fees. It’s essential to check the terms and conditions and be aware of any changes to these promotions.

Read more: CIBIL score for credit card – minimum and maximum

In conclusion, while transferring money from a credit card to a bank account without charges in India can be challenging, several methods can help you achieve this. By leveraging digital wallets, promotional offers, and understanding your credit card’s benefits, you can effectively manage and minimise fees. Always stay informed and cautious to make the most of your financial transactions.