People have been transferring money between bank accounts for decades, considering it a straightforward and standard practice. All you need to transfer money to someone else’s online bank account is their account number and sort code.
You can transfer money from your own online current account to another in seconds. But what about transferring money between and credit card and a debit card?
It is possible to transfer money from a credit card to a debit card, but there are several things you need to take into account first. You may want to send money to another individual or transfer funds to a debit card in your name. Whatever the reason for the transfer, here are some things you need to consider:
Credit card debt
When you transfer money from a credit card balance to a current account, this is known as a money transfer. Many credit card companies will advertise offers on money transfers as well as balance transfers as a way to entice new customers.
You may be able to transfer money from a credit card to a current account and pay 0% interest for a stated period. However, after your offer period has elapsed, you will likely pay quite a high-interest rate.
You need to be aware of this when transferring money between a credit card and a debit card. When you use funds within your credit card limit, you essentially accumulate debt that you need to pay off later.
If you pay the amount off in full at the end of the month or within the stated interest-free period, you will not incur additional interest. However, if you only pay off a small amount each month, you will end up paying more than you transferred.
How to transfer money between a credit card and debit card
Transferring money between a credit card and a debit card is very similar to transferring to a bank account. To transfer funds to a debit card, all you need is the name on the card, card number and expiry date.
Depending on the provider, you may be asked for additional information such as a bank account number and sort code.
Fees and charges
There is usually a fee to perform a transfer between a credit card and a debit card. This will depend on your provider but is usually somewhere between 1% and 5%.
However, you need also to be aware of what interest rate you will be paying on your credit card on the funds you have transferred.
Remember, the money will be coming out of your credit allowance and will need to be paid back, so you need to consider if it is a cost-effective way of transferring funds.
Is it safe to transfer between cards?
Transferring money, whether it is between a bank account or debit and credit cards, is, by and large, quite safe. Most money transfer processes have high-security standards and will check a payee’s details before authorising payment.
If you are using the transfer to send money to another person, you should check with them to see if the payment has reached them.
Related posts
Publisher: Source link
