Does it cost to transfer money from credit card to current account?

Transferring Funds from Credit Card to Current Account: Beware of Fees

Many individuals may face the need to transfer funds from their credit card to their current account for various reasons, such as debt consolidation or emergency expenses. However, it’s crucial to be aware that these transfers are often not without cost.

Credit card to current account transfers typically incur fees ranging from 2.99% to 5% of the transferred amount. While these percentages may seem small, frequent or substantial transfers can quickly escalate the total cost. For instance, transferring $1,000 with a 3% fee would result in $30 in charges.

These transfer fees are typically charged by the credit card issuer and may vary depending on the card and the specific terms and conditions. It’s essential to review the terms of your credit card agreement carefully to determine the applicable fees before initiating a transfer.

The high cost of credit card to current account transfers makes it a less desirable option compared to alternatives such as balance transfers or personal loans. Balance transfers typically come with a one-time fee, which can be significantly lower than the ongoing fees associated with credit card transfers. Personal loans may offer lower interest rates compared to credit cards, reducing the overall cost of borrowing.

If transferring funds from a credit card to a current account is unavoidable, it’s advisable to keep the amount and frequency of transfers to a minimum. Additionally, exploring alternative options, such as balance transfers or personal loans, should be considered to minimize the potential financial impact of the transfer fees.