What Are The 9 Best Ways To Transfer Money From Credit Card To Prepaid Card Online
There are different apps and websites in todays market that aid in money transfer. It might be difficult to choose which is the most suitable for you. That is why I am here to give you detailed information so that you can make an informed decision on which company you can use to send money. The following are the ways you can transfer funds from your credit card to a prepaid card online.
How To Do A Credit Card Balance Transfer
How do credit card balance transfers work? After getting approval for a card with a 0% interest balance-transfer offer, find out whether the 0% rate is automatic or depends on a credit check. The next step is determining which balances to transfer cards with high interest rates should come first.
Next, calculate the transfer fee, which is typically 3% to 5% . Is there an amount cap on the fee? If not, that can make transferring larger balances worthwhile. Also check the on your new card before you initiate a transfer. The requested balance transfer cannot exceed the available credit line, and balance-transfer fees count toward that limit.
How Does A Cash Advance Work
A cash advance is when you use your credit card to borrow cash. Its an incredibly expensive method of borrowing money, thanks to high interest rates that start being charged as soon as you withdraw the money theres no grace period like there is for purchases.
Sometimes the cash advance rate on your credit card is the same as the purchase APR, but it may be higher.
On top of the high interest rates, you may also be charged a cash advance fee for using the service. This could be a flat fee, a percentage of the amount you withdrew, or a combination of the two.
You May Like: Remove Credit Card From Google Express
Do I Need A Prepaid Card If I Have A Credit Card
If you have a credit card, you may not need a prepaid card since a credit card can serve any activity that could require you to use a prepaid card. The good thing with a credit card is that you can actually borrow money from your bank to use and repay back at the end of the month. The feature is different with debit and prepaid cards.
Again, you can transfer money from one debit card to another within no time. If someone else has money in his or her debit account, he or she can send you some amount of money from his or her card to your prepaid card.
Sometimes you may be unqualified to get a credit card from any bank due to your poor credit records. In such a scenario, you may decide to get a prepaid card. A prepaid card does not need your credit history since you will only use what is in your account and not more than that.
Use A Debt Consolidation Loan
If your credit card interest rates are exorbitantly high, you can try applying for a debt consolidation loan. When you consolidate debt, you can obtain lower interest rates that make repayment much easier on your finances. If you have less than perfect credit, know that there are debt consolidation loans for bad credit online.
You May Like: Best Buy Credit Card Online Payment Citibank
You Can Find 0% Apr Balance Transfer Offers
For a balance transfer to be effective at reducing your fees, the card to which you transfer you balance needs to charge a lower interest rate than the original card. For example, if you transfer a $1,000 balance from a card charging 20% interest to one charging 10% interest, youll go from paying $200 a year in interest to only being charged $100 a year.
Even better than cutting your interest rate in half is to cut it out completely. For that, youll likely need to take advantage of one of the introductory 0% APR balance transfer offers provided by many popular credit card issuers. Our favorite cards offer 0$ APR on balance transfers for up to 18 months, as well as popular rewards programs and no annual fees.
When comparing 0% APR intro offers, be sure to double check that the offer is good specifically for balance transfers, rather than only applying to new purchases. With cards offering intro rates for both new purchases and balance transfers, youll also want to verify the length of the introductory period, as it can vary between transaction types.
How To Send Money By Credit Card
Weve all been there. We needed money, or our friend paid for the whole dinner, and now its time to pay them back. But what if you dont have the money on you because youre more of a credit card person? Dont worrytheres a way of paying a friend back with a credit card, but the transaction wont go without fees. Various apps allow you to pay back your friends without pulling out your wallet or hitting the ATM. Here are the most common ways to do it:
Also Check: Interest Rate On Best Buy Credit Card
Can You Transfer Money From A Credit Card To A Checking Account
If you have a financial emergency and choose to take cash out via your credit card account, the way you’d do this is through a cash advance. This is a loan you must repay and that can’t exceed the current balance available on your credit card. Be aware that interest starts accruing on the cash withdrawal as soon as you take it out. There’s no grace period like there is with a typical credit card purchase, so if you need the money for something that you could just pay for with your card, it’s better to do that.
But if you need cash, the process for getting your money depends on your credit card issuer, so you’ll need to find out what they offer. Here are a few ways you can typically get cash advance money into your bank account:
Here’s A Simple Example Of How A Money Transfer Works
Imagine youve got a credit card offering 0% on money transfers for 12 months, with no other balances on the card.
Your boiler breaks unexpectedly, leaving you with a repair bill of £500, but you dont have enough money in your bank account and the tradesman youre using doesnt accept credit cards.
You have a credit card offering 0% interest for 12 months on money transfers made within the first 60 days, with a 3% transfer fee.
Making a transfer
You request a transfer request for £500, which is approved. The outstanding balance on your credit card is now £515, including the 3% transfer fee. £500 is transferred to your current account, which you can use to pay for your boiler repairs, either with cash or by debit card.
Paying it back
If you pay £51.50 on time every month, and you dont use your card to make any other purchases, you could clear your balance within 10 months, without paying any interest.
Its useful to know that the standard interest rate will apply to any remaining balance when the promotional interest rate expires.
Recommended Reading: Td Prepaid Credit Card
Can You Transfer Money From A Credit Card To A Bank Account Easily
Sending money from a credit card direct to a bank account is one of the most popular ways of sending money, especially when wanting to support friends and family overseas. At Western Union, we make the process incredibly accessible and reliable, so you know your money will arrive in your loved ones bank accounts whenever they need it, wherever they are.
How To Transfer Money From Credit Card To Credit Card
Transferring money from one credit card to another can be a useful option. For instance, you might want to purchase an item that costs more than the credit limit you have on one credit card. You would then transfer money over from a separate credit card and increase the available amount on the credit card you wish to use for the purchase. The transfer process is generally handled as a credit card payment from another credit card.
Read Also: Best Buy Payment App
Use Money Transfer Providers
Transferring money from a credit card to a bank account via a money transfer service is very straightforward. For example, with Western Union, you simply choose the country you wish to send money to, the amount, and provide the account details. Then, we do all the hard work.
The money transfer service will then contact the recipients bank with all the necessary information needed for them to receive the money. This is a quick and accessible way for you to send some money and support loved ones anywhere in the world.
You May Need To Call Your New Issuer To Transfer Funds
The method you use to transfer your balance will depend primarily on the card to which you are going to make the transfer. Many major issuers will allow consumers to transfer balances to existing cards either in person, by phone, or online through their credit card management system. However, smaller banks and/or credit unions may require that the process be completed over the phone or at a local branch.
Regardless of the method you use, youll need the account number and balance of the credit card from which you are transferring the funds. Youll also need the account number of the transfer card, or the card to which you are moving the funds. With this information in hand, you can either call the customer service line for the transfer card or log into your online account to complete the transfer.
The exact steps for transferring your balance online will vary by issuer. For instance, Chase customers can select the Transfer Balance option next to the Available Credit listing on their credit card summary, while Discover cardholders can find balance transfer selections under the Credit Options menu. If you are having trouble completing the process online you can contact your issuer for assistance.
Many major issuers allow consumers to make their balance transfer requests during the application process.
Recommended Reading: Cabelasclubvisacom
How Do I Send Money Internationally Using My Credit Card
You have several ways to use your credit card when paying for an international money transfer, including:
- Your bank. Use your credit card to transfer money overseas from your bank account either online, over the phone or by visiting a branch. But with one caveat: Your credit card provider will likely consider your transfer a cash advance, resulting in both a higher rate of interest and a cash advance fee.
- Money transfer specialist. Specialist transfer companies like Western Union, MoneyGram, WorldRemit, Ria Money Transfers and more allow you to send money online with your credit card. These providers allow you to pay for online transfers using your credit card, and a few also allow for in-person transfers with your card.
- PayPal. Link your credit card to your PayPal account to make an overseas transfer. Fees are 2.9% of your transaction amount and $0.30 per transaction.
Beware The Grace Period
People who take advantage of these offers sometimes find themselves on the hook for unexpected interest charges. The problem is that transferring a balance means carrying a monthly balance. Carrying a monthly balance by not paying off the minimum amount due each montheven one with a 0% interest ratecan mean losing the cards introductory APR, its grace period and paying surprise interest on new purchases.
The grace period is the time between the end of the credit card billing cycle and the due date of the bill. During that period a cardholder doesn’t have to pay interest on new purchases. But the grace period only applies if a cardholder is carrying no balance on the card. What many consumers dont realize is that carrying a balance from a promotional balance transfer can affect the grace period if minimum payments aren’t made each month.
With no grace period, purchases on the new card after completing the balance transfer rack up interest charges. One good change: Since the , credit card companies can no longer apply payments to the lowest-interest balances first they now have to apply them to the highest-interest balances first.
Also bear in mind that many offers stipulate that the cardholder’s determines the actual number of months of 0% balance transfer in the introductory period.
The only way to get the grace period back on a credit card and stop paying interest is to pay off the entire balance transfer, as well as all new purchases.
Also Check: Best Buy Credit Card Financing Offers
Cons Of Owning A Credit Card
1. Too much spending using the card can lead to debt
When you use a credit card, you are spending the money of the bank, not your own. This money must be paid back, plus the interest. You must at the very least meet the required amount due monthly. If you let the unpaid balance grow, a higher interest rate can drive you further into debt.
2. Paying late impacts your accounts credit score
Your credit ratings can be improved by making timely payments and maintaining low credit card balances. However, if you have a record of paying late, maxing out at least one of your cards, closing outdated accounts, or applying for new credit lines too frequently, you may harm your credit history.
What To Look For In A Balance Transfer Card
Balance transfers can save money. Say you have a $5,000 balance on a credit card with a 20% annual percentage rate . At that rate, carrying that balance and paying $250 a month would require 24 months to pay off and cost $1,134 in interest. After securing a 12-month 0% balance transfer on a new credit card and moving the $5,000 balance, the cardholder gets a year to pay it off with no interest and just a fee to transfer the balance.
But details and surprises with these transfers are numerous. After the transfer, for example, you still have to make the minimum monthly payment on the card before the due date to keep that 0% rate. And pay attention to the interest rate. Does the new card have a regular interest rate thats higher than the interest the balance incurs on your current card?
Similarly, a default under any of the rules of the cardholder agreementsuch as making payments late, exceeding the credit limit, or bouncing a checkcan make the interest jump to a penalty rate as high as 29.99%. The 0% rate is usually valid for 12 or 18 months, sometimes more. Can you pay off the transferred balance during that period? If not, what interest rate kicks in afterward?
Recommended Reading: Apply For Best Buy Credit Card Online Or Instore
How Can I Use My Credit Card To Raise Some Cash Quickly
This is how a money transfer credit card works:
* You have a set amount of money which you can borrow on your credit card. That is called your available credit.
* If you need some money you can transfer some of your available credit to your bank account from your money transfer credit card.
* You will be charged a one-off fee for the money transfer which is usually around 4% of the total amount you are transferring.
* When you have made the transfer the debt will show up on your credit card balance. You will be sent a statement each month and you need to pay off the minimum monthly amount as you would with a normal credit card. Pay off more if you can.
* Using a money transfer from your credit card this way will reduce your overall credit allowance until you clear the borrowing.
* It is best to use a money transfer credit card to do this rather than an ordinary credit card, because the charges will be lower.
* There are other, cheaper ways to borrow long-term so only use a money transfer credit card in an emergency and think about how you will pay it back.
Standard Transfers Your Bank
As international payment providers, banks can be versatile but do have their weaknesses. They provide multiple ways to fund and send your payment, although youll pay for all of them no matter what method you choose. The fees are higher than alternative transfer providers and the rates are worse. As a result, the cost of this extra convenience doesnt seem worth it.
You can use a credit card issued by your bank to make an online international money transfer, providing it is linked to your online banking. Banks also accept credit cards for payment through other forms of transfer including phone banking and in person at a branch.
Recommended Reading: Valero New Card
How To Transfer Money From Credit Cards
You can transfer the funds directly to your bank account using money transfer credit cards. Some cards charge a low or zero interest rate for a specific period.
Some credit cards offer you an interest-free ATM cash withdrawal facility. However, with Bajaj Finserv RBL Bank SuperCard, you dont incur any interest if you repay the amount within 50 days.
How Do I Get The Best Money Transfer Credit Card Deal
If you want the ‘best’ deal, you should look for a card with the longest 0% interest period and the lowest money transfer fee. However, the transfer fees tend to be lower on cards with shorter 0% periods. So if you think you can repay your debt quicker, it could work out cheaper to choose a money transfer card with a shorter 0% period and lower fee.
It is important to have a plan for repaying the money transfer amount from your credit card after the 0% interest rate period ends.
Recommended Reading: Pay My Cabelas Club Visa