Almost all of us use a credit card as it gives us the power of buying and expanding without having cash or balance in a bank account. As the dependency upon the credit cards is growing fast, our expectations are also increasing. Today, transferring the money from a credit card into the bank account is the latest requirement; and many cards issuing agencies are facilitating the customers to do so. Cash in bank account gives multiple benefits like credit score improvement and the more freedom to use the money anytime for any purpose. Yes, not all the credit cards allow to doing so but money transfer credit card gives you this fantastic facility.
What Is Money Transfer Credit Card?
Money transfer credit card pays cash direct into bank account. Some cards charge 0% interest on the transferred payment for the fixed period; although, there is a fee for funds transfer. For example, if you transfer £4,000 with 4% fee, you owe £4,160; and, you need to make a minimum monthly repayment until the debt is paid. If you are exploring the options to get a low-cost personal loan to make a significant purchase or to pay off debts, Money transfer credit cards are the best option you must consider. Using a money transfer card means that your transactions are not protected by the Consumer Credit Act 1974. Promotional rates also come as a bonus for the users.
What Is Great About Money Transfers?
Money transfer credit card saves considerably for you. The money transfer with an introductory promotional offer is cost effective than buying the goods or services through credit card. There are no early payments charges. Depending on the credit card issuing agency, you are unlikely to pay for overpayments or for clearing the balance early; it means you can make debt faster. When you get no interest rate money to be transferred to your bank account, you get savings account interest rate. If you use any amount of promotional offer but don’t pay it off before the offer period ends, interest is charged on the remaining amount. Although, it is a great facility to get any time no interest rate- no guarantor- same day loan it needs perfect money management otherwise you will have to pay a hefty penalty for holding the money longer than the standard period.
How to Transfer Money from Credit Card to Bank Account:
You must know the amount to be transferred along with account number and bank code. You can transfer the amount to building society account also. To request the money transfer online, just log in to your Money transfer credit card account. The first time, you will have to create your account. You can use a current credit card also to stuff the cash in a bank account if you don’t have money transfer credit card. Using a credit card for money transfer is called cash advance. Cash advance is better to avoid because it is one of the most expensive ways to borrow funds. Card issuing agency charges interest daily from the moment of cash advance until the full amount is paid back; and addition, you are charged every time for withdrawing cash with a credit card. The cash advance APR may be between 20-30%.
What Else Do You Need To Know For Seamless Money Transfer?
- All money transfers are subjected to the approval of the Money transfer credit card issuing agency.
- The lowest amount that you can transfer is £100.
- The maximum amount that you can transfer depends on credit limit and existing balance.
- Total transfer amount requested plus balance amount can’t exceed more than 93% of the maximum credit limit.
- Money can be transferred only to a UK bank or a building society account.
- Once the transfer is initiated, you can’t cancel or reverse the process.
- The transfer fee is non-refundable.
- You have to use money transfer credit card for funds transfer within a set period; usually, this period is of 60 days after receiving the card. If you use this card for money transfer after this period, 0% facility is not provided.
- The Money transfer credit card provider can stop 0% facility if you do not pay a minimum monthly repayment or you cross the credit limit.
- While transferring money from Money transfer credit card, it is assumed that you know that your transactions are not covered by the Consumer Credit Act 1974 for credit card payments (Section 75 protection).
The Top Money Transfer Credit Cards in the UK:
- Virgin Money allows the fund’s transfer at 0% interest rate for 26 months; after that, the interest rate over the balance amount is 20.9%. Transfer fee @ 2.9% is also charged. Purchases made with this card are also free of interest rate up to 26 months; after that, the interest rate over the balance amount is 18.9%.
- Tesco Money Transfer credit card is good for money transfer as well as for balance transfer benefits. It allows the funds transfer at 0% interest rate for 36 months; after that, the APR over the balance amount is 18.9%. Transfer fee @ 3.94% is also charged.
- MBNA Platinum credit card offers 32-months money transfer period along with 24 months for balance transfers. The money transfer fee is 2.99%. The balance transfer fee is 3.45%. Representative APR for purchases is 19.9%. It is available for the poor credit score holders also.
The other options you can consider are:
- Barclaycard Platinum 27 Months balance transfer and purchase credit card 19.9% representative APR.
- Sainsbury’s bank no balance transfer fee credit card at 19.9% representative APR.
- HSBC 32 months balance transfer credit card at 21.9% representative APR.
Everyone wants the ‘best’ deal to get quick funds in an account, but it transfers the responsibilities also. Money transfer credit card is a decent facility to get quick cash help for the people having a poor credit score. To experience the best, you need to choose the Money transfer credit card wisely through in-depth comparison keeping in mind the repaying capability. You must aim to get the Money transfer credit card with the longest 0% interest-free period but the lowest money transference fee. The fund’s transfer fee tends to be lower on the Money transfer credit cards with a shorter 0% period.