A credit card allows you to borrow money and use it for various transaction activities. You can receive a credit card from a bank or credit union. Some mobile payment wallets such as PayPal also allow you to apply for credit cards to borrow funds when in need. You must qualify to get one by having the correct number of credit scores. You can use a credit card to perform various activities, including transferring money to others. You will learn how to transfer money to someone else’s credit card.
Acquiring some credit cards is not easy, especially if you have no borrowing history. The issuing companies require you to have some scores for you to get the cards. The scores express your ability to repay debts. They show the capability for you to repay a loan. However, there are bad credit cards that only require poor scores.
When using a credit card, your issuer reports your card usage to the credit bureaus. These are bodies that keep the usage records and provide them to issuers once they request them. If you use your card well, you get excellent scores and vice versa. Late payment of your debt is one of the things that cause poor scoring.
How long does a balance transfer take?
There is no particular time as to how long a balance transfer should take. However, the typical transfers take about five to seven days to complete. It is essential to allow up to 21 days to be sure that everything is put in position.
How to get a credit card
To get one, you need to research the available ones in the market. You can check online banks and credit unions to see various cards you can apply for. Since most of them require scores, you must check with the bureaus or your bank if you ever borrowed a loan.
After knowing your scores, you can then advance to apply for the card that meets your requirements. Online application is the easiest since you only need to provide the required details, and you are good to go. The issuer must also contact a hard inquiry from the relevant bodies to know your borrowing capability.
After a successful application, you receive your card at the address you provide, then activate it to start using.
What are the various categories of credit cards?
There are two main types of credit cards that you can use for various financial needs. They include the secured and unsecured ones. Secured credit cards require one to deposit some money to act as security. The more you deposit, the bigger your limit. They are mainly helpful when building your scores.
Therefore, they are suitable for a person with bad scores or someone who would like to build credit scores from scratch. Once you attain favorable scores, then your card issuer avails your balance in your account for use. You can then acquire an unsecured credit card to use for your needs.
Unsecured credit cards require FICO scores, and various scores allow you to get specific cards. That means the more your scores, the better your card in terms of interest and limit.
Which credit card is the best to build credit?
Any credit card can build your scores. However, the secured one is better than the unsecured one for bad scores because it has low-interest rates that ensure that you do not pay a lot of money to the issuer.
How to use a credit card
There is not much difference in how you can use a credit card and a debit card. The cards differ on how you acquire them, but their functions are the same. They include the following.
i) Withdraw money
One can use your card to withdraw funds at any ATM that supports your service provider. You can as well withdraw money at an ATM using your PIN. Either way, using a credit card to withdraw money is costly due to the fees that accompany the process. You can part with a cash advance fee and ATM fees in case you use an out-of-network ATM. We shall check how to transfer money from a credit card to a bank account shortly.
ii) Buy goods and services.
A credit card allows one to purchase goods and services. You can either buy at a physical store by swiping at the register or buy online. Some may give you rewards such as cash backs, miles, and points when you use them to transact.
iii) Pay bills
Payment of bills becomes easy if you have a card. You can log into your online account and initiate a process of paying your bills without writing checks or visiting your bank to have them transfer funds to the service provider.
How to transfer money to someone else credit card
You may not be able to move funds from your card to someone else directly. However, there are various ways you can transfer a balance from one credit card to another. They include the following.
1) Get a convenience check
You can request your issuer to give you a convenient check of the amount of money you would like to transfer. A convenience check works like other ordinary checks, and the beneficiary needs to deposit it in their accounts to repay their debts.
2) Withdraw money at an ATM and then deposit it in the account
That way, you will be able to move money in an indirect way to the other person’s card. However, just as I have mentioned above, you will need to part with cash advance fees. Another way to transfer money between credit cards is using the balance transfer tactic. It allows you to move your debts to another card with favorable terms.
How to do a balance transfer
When doing a balance transfer, you must first apply for the card you need to use. Such credit cards have lower Annual Percentage Rates (APRs) compared to others. They also have a 0% introductory APR to ensure that you benefit from the transfer. Are you among those who ask the question; can you pay a credit card bill with another credit card? Then you have the answer with you.
Once you decide on the best balance transfer card, you can then proceed to submit your application. The following is the summarized process to carry out a balance transfer.
- Apply for the balance transfer card.
- Provide the transfer details to the new issuer.
- Wait for the new issuer to complete the transfers
- Pay your debt.
Can you transfer money from your credit card to a bank account?
Credit cards allow you to transfer money to a bank account. That is called a cash advance. It attracts some fees, but sometimes it is unavoidable to do the transfers. The following is the process to transfer funds to a bank account.
a) Use online account
Most issuers allow you to create online accounts that you can use to carry out transfers. That means you can quickly move funds to a bank account. All you need are the routing and account numbers of the said account, and you are good to go. The routing number identifies the bank’s branch, while the account number distinguishes the recipient from other account holders.
b) Use check
Earlier, I mentioned that you can write a convenience check to transfer funds to another card. Well, you can as well do the same by requesting a check from your issuer and taking it to your bank for deposit. The funds may not reflect immediately due to processing time. You can also use your online banking app to deposit the check online by signing and taking photographs and uploading them for processing.
c) Transfer at an ATM
You may withdraw funds from an ATM and then deposit them in the account of interest. You must write a deposit slip, then proceed to put the funds in an envelope, then deposit in the ATM deposit slip. You can also take the funds to the cashier and request them to deposit them for you.
d) Over the counter
Banks usually accept withdrawing money over the counter. You need to carry your identification document with you and present it to the cashier, who then withdraws funds on your behalf. After that, you can deposit the funds in the target bank account.
And by the way, the above methods are valid when you want to transfer money from a credit card to a debit card. You transfer money to the checking account that associates with the debit card you want to move money to, and just like that, the funds reflect in your account.
Bottom line
A credit card allows you to borrow funds from your issuer, whereby you can get a secured or unsecured one, depending on your needs. A secured credit card is the best way to build credit. You can move your card balance to the other to enjoy better terms. A balance transfer can take about five to seven days to complete. Credit card issuers also allow one to transfer money to a bank account.
