woman transferring money

Can I transfer money from my credit card to my account?

author: Alice Williams

By Alice Williams

While some banks will allow you to transfer funds from your credit card to your bank account, it doesn’t always mean it’s the best decision.  

While it is possible for some credit card to allow you to transfer money into your account, it’s not always the best decision. It also depends on the type of card you have as well. Some may not allow a money transfer option at all and some may only allow a balance transfer.

Before you do anything, check what fees are involved and consider whether you’d be able to make the required repayments. Some lenders may charge high fees for this kind of transfer so it’s worth considering before you do anything. 

If you often find yourself in this situation, you could look into other types of cards. There are some available that will let you fund your account with lower fees than if you used a credit card.

Money transfer cards

What is a money transfer credit card?

A money transfer card is a credit card that allows you to pay money directly into your bank account. A lot of these cards come with an introductory offer of a 0% interest rate for a fixed period. However, some do charge interest so check the details with the provider first.

If you do use your card for transferring money, you’ll then need to make monthly repayments until you’ve paid back the amount you borrowed. If you don’t make the minimum repayment each month, you’re likely to be charged a late payment fee and have an impact on your credit score.

Also be aware that once the fixed term is over for the 0% interest rate, you’ll be expected to pay whatever the regular interest rate is.

How does a money transfer card work?

Like any other credit card, you’d agree on a maximum card limit with your lender. You’d then transfer an amount from your money transfer card directly over to your current account. Be aware that some companies have a minimum transfer amount as well as a maximum.

Once the money has been transferred over to your current account, you’ll be able to use your debit card to pay for things or take cash out of the ATM as you normally would.

Remember, when you use the card to transfer money into your account, you’ll then have to pay a fee as well. This usually up to 5% of the balance.

Who’s eligible for a money transfer card?

To be eligible for a money transfer card you’ll usually need to:

  • be 18 years old or older
  • be a UK resident
  • have a UK bank account.

It’s unlikely you would get a money transfer card if you’re a student or unemployed.

When you apply for a money transfer card your credit history will also play a factor in whether your application is successful or not. If you have a bad credit history (including county court judgements, Individual Voluntary Agreements, and defaults), you’re less likely to be given a money transfer card.

If you’ve recently applied for a money transfer card and have been rejected, try not to apply for another one too soon after as it’ll show up on your credit report. Too many failed applications for credit on your credit report might reduce your chances of being accepted for credit in the future. To avoid this, make sure you use eligibility checkers before you apply.

Important things to remember

  • make repayments on time – if you default on any repayments it will result in extra charges and will show up on your credit report.
  • make at least the minimum repayment every month –your credit report will show that you’re making regular payments which prove to other lenders you’re a reliable borrower
  • make sure you’re only spending what you can pay off – it might be tempting to spend more than you can afford but you might regret it when it comes to paying it back. Keep your spending within the limits you can afford to
  • remember when the 0% offer ends – if you use your card beyond the offer, you’ll be charged interest
  • find out the terms and conditions of your card – for example, make sure you know what the fees are for transferring money and what percentage of your credit limit you can transfer as well.

Give your credit a make-over, and learn how to boost your score in 3 months.

Disclaimer: All information and links are correct at the time of publishing.

author: Alice Williams

By Alice Williams

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