In this article, we’ll explain how to choose the best money transfer credit card to meet your needs.
In case you’re not familiar with this term, “money transfer cards” are an alternative payment option issued by a wide range of banks in different countries, though we’ll be specifically focusing on the UK in this article
This article is part of our free series on opening an offshore bank account with a credit card, which you can access for free by clicking the link above.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Best Money Transfer Credit Card
- Is a Credit Card Money Transfer a Good Idea?
- How Can I Send Money From My Credit Card Without Fees?
- Reasons You May Send a Money Transfer From a Credit Card
- Frequently Asked Questions
- Ready to Explore Your Options?
Best Money Transfer Credit Card
The best money transfer credit card is one that offers the lowest borrowing fee, the least amount of interest, and the longest interest-free period possible. That said, in order to be eligible for the best money transfer credit cards, you need to have a strong credit history and manage the card effectively once you’re approved.
Not surprisingly, the specific money transfer credit card that is best for one person will not be the same for everyone. So, it’s important to consider your unique profile, unique borrowing requirements, and overall goals before choosing a card for yourself.
Likewise, different financial institutions offer different benefits and card features, ranging from travel rewards points to varying levels of transaction anonymity, so knowing which benefits matter to you is an important first step.
With this in mind, here are the most important variables to consider when choosing the best card for your situation:
- Applicable fee for transferring funds from the card
- Availability of an interest-free period
- Annual percentage rate applied after the interest-free period
- Eligibility criteria of the card and card issuer
- Available balance for transfer
By considering these factors and getting clear on your specific objectives, you will be able to make a much more informed decision about which money transfer credit card is best for you. Likewise, these considerations can also help you better think through how you plan to use your card to facilitate spending in the future.
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Is a Credit Card Money Transfer a Good Idea?
A credit card money transfer could be a good idea if you are in need of short-term funds to cover a higher-interest loan or debit facility. This may include paying off a high-interest overdraft, personal loans, or another personal debt.
However, it’s important to note that fees typically apply to this type of money transfer. And, if not managed correctly this can be a very expensive source of short-term capital.
With this in mind, anyone considering a card as a source of capital should consider the fees, interest, and period of time that the funds would be needed.
How Can I Send a Money Transfer From My Credit Card Without Fees?
The available methods you can use to send a money transfer from your card without fees will vary based on where you are located and the cards that you have available to you.
Ways to Send a Money Transfer From a Credit Card Without Transfer Credit Fees
United Kingdom
If you are in the United Kingdom, you may be able to access money transfer credit cards, which may be one of the best options available.
However, even these cards charge an initial fee for the transfer. And, if the balance of the card is not repaid before the interest-free period lapses, annual percentage rates will apply to the outstanding balance.
United States
Alternatively, if you live in the United States and other countries, you may want to consider options like money order service. While money order services do charge fees they tend to be competitive and do allow you to use a credit card.
However, it’s important to note that many card issuers view a money order as a cash advance. Not to mention, they usually charge high interest rates on the balance of the transfer starting immediately after the transfer is made.
Reasons You May Send a Money Transfer From a Credit Card
There are a number of different reasons why you may send a money transfer from a credit card. However, in most cases, this option should only be used in case of an emergency.
That said, if you are able to access a money transfer card, it is possible that this could be the best short-term financing solution to cover higher interest rates on other personal debts.
With this in mind, let’s take a look at a few of the reasons you may send a money transfer from a card.
It can be useful for paying off short-term debt, such as a small overdraft, or if you need a little extra cash in your account to pay unplanned expenses.
Reasons You May Send a Money Transfer From a Credit Card
- Repay high-interest overdraft
- Pay down high-interest personal debt
- Cover unexpected emergency expenses
Outside of these three scenarios, other financing options are usually better suited to the short-term financing needs of most individuals. However, whether transferring money from a card is a suitable option also depends on the terms that apply to transferring funds.
Importantly, in many cases, money transfer credit cards have specific methods that need to be followed when transfers are being sent. Otherwise, cash advance fees and interest rates may apply, which tend to be significantly higher. So, if you are planning to use a money transfer card, you should confirm with the card issuer before initiating a transfer or withdrawing cash.
Frequently Asked Questions
Below are three of the most common questions that we receive from people looking for the best money transfer options. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Which Credit Card Is Best for Money Transfer?
The best card for a money transfer will ultimately depend on your eligibility, requirements, and financing requirements. We encourage our members to consider the following criteria when choosing cards: applicable fees, interest-free period, annual percentage rate after the interest-free period, eligibility criteria, and available balance. With this information, most individuals will be able to identify the best cards for their needs.
Can I Send a Money Transfer From a Credit Card to a Bank?
Yes, you can send a money transfer from a card to a bank. You can do this by sending a money order via a money order service like Western Union or through a money services business like PayPal and their dedicated bank transfer service. Alternatively, if you are eligible for a money transfer card, you can also use their transfer services to facilitate transfers to bank accounts.
Can I Transfer Money From My Credit Card to My Other Account?
Yes, it is possible to transfer money from your card to your other bank account. To do this, you will typically need a money transfer card. But also, you will need to initiate a transfer directly with the card issuer. However, in most cases, in order to get favorable rates, you will need to initiate a transfer within the first two to three months after obtaining a card.
Ready to Explore Your Options?
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