How to Transfer Money from Credit Card to Bank Account Without Fees

In today's digital age, many individuals seek convenient ways to transfer money from their credit cards to their bank accounts. While numerous applications offer this service, they often come with varying fees ranging from 1% to 3%. In this post, we will explore a specific app that allows users to transfer money without incurring charges, while also discussing the nuances of the process.

Understanding the Costs of Money Transfers

When transferring money from a credit card to a savings account, users frequently encounter fees. Some applications charge a flat percentage of the transaction amount, which can add up quickly. However, the app we will discuss claims to offer a way to transfer funds without these fees, at least for the first transaction.

Introducing the Housing App

To begin the transfer process, you need to install the app called Housing: Buy, Rent, Sell & Pay from either the App Store or Play Store. This app is designed to facilitate various transactions, including transferring money from credit cards to bank accounts.

Step-by-Step Guide to Transfer Money

1. Install and Open the App: After downloading the Housing app, open it and grant the necessary permissions.
2. Select the Transfer Option: Navigate to the option labeled ‘pay on credit’. Here, you will see various payment categories. It is advisable to avoid options like House Rent, which may incur additional fees. Instead, select ‘Education Fees’ or ‘Tuition Fees’.
3. Enter Transfer Amount: Input the amount you wish to transfer. For example, if you want to transfer ₹50,000, enter that amount and click ‘continue’.
4. Beneficiary Account Details: You will need to enter the details of the savings account where the money will be transferred. This includes the account number, IFSC code, and the account holder's name.
5. Verification Process: After entering the beneficiary details, you will be prompted to enter your phone number. An OTP will be sent for verification. Enter the OTP and proceed.
6. Invite Code: To ensure that the transfer is free of charge, you must enter an invite code. In this case, the code is CCTB13. This step is crucial as it allows you to avoid the standard fees associated with the transfer.
7. Finalizing the Transfer: After entering the invite code, you will be asked to provide your PAN card details for verification. Once verified, you will need to enter your credit card details to complete the transaction.

Understanding the Fees and Cashback

During the transaction, you may notice that while ₹50,000 is credited to your savings account, a slightly higher amount is deducted from your credit card. For instance, if ₹49,642 is deducted, it indicates a fee of ₹358. However, this fee is often returned as cashback within the Housing app, making the effective cost of the transfer much lower.

Cashback and Transaction Limits

It is important to note that while the first transfer may seem free or low-cost, subsequent transactions may not benefit from the same invite code. The cashback process can sometimes take time, and in about 10% of cases, users report that the cashback remains in progress without being credited.

Conclusion

The Housing app presents a viable option for transferring money from a credit card to a bank account, especially for first-time users. While it does not completely eliminate fees, it significantly reduces them, and the cashback feature can offset costs. However, users should be aware of the potential delays in receiving cashback and the limitations on subsequent transactions. Overall, this app can be a beneficial tool for those looking to save on transfer fees, provided they understand the terms and conditions involved.

If you found this guide helpful, consider sharing it with others who may benefit from transferring money without incurring high fees.