Can I transfer money from Citi credit card to bank account?
Transferring money from your Citi credit card to a bank account? It’s possible, but it’s not as straightforward as transferring from one bank account to another. Here’s what you need to know:
- First off, what you’re talking about is usually called a “credit card cash advance“. It’s basically like taking a loan from your credit card.
- Citibank does allow this, but there are a few things to keep in mind. It’s not the same as making a purchase with your credit card.
- You can transfer money to your linked savings account through Citi’s net banking or mobile app. Look for options like “Loan on Credit Card” or “Cash Advance“.
- Another way is to withdraw cash from an ATM using your credit card. This cash can then be deposited into your bank account.
- Here’s the catch – cash advances usually come with higher interest rates than regular credit card purchases. The rates can be pretty steep, often around 3-4% per month.
- Unlike regular purchases, there’s no grace period for cash advances. Interest starts accruing from the day you make the transfer.
- There’s usually a cash advance fee too. This could be a percentage of the amount you’re transferring or a flat fee, whichever is higher.
- Citibank might have limits on how much you can transfer. This is often a percentage of your total credit limit.
- Remember, using your credit card this way can impact your credit utilization ratio, which might affect your credit score.
- If you need to transfer money, consider alternatives like a personal loan or a balance transfer to a lower-interest card. These options might be cheaper in the long run.
While it’s possible to transfer money from your Citi credit card to a bank account, it’s generally expensive and should be used sparingly, maybe only in emergencies. It’s a bit like using a premium taxi service when a regular bus would do – it’ll get you there, but at a much higher cost!