Credit and debit cards are payment cards that allow you to buy goods and services online and at physical stores. You can use the two to withdraw money from ATMs and over the counters at banks and credit unions. They are very convenient when it comes to carrying large sums of money. You do not have to carry a lot of money with you in your briefcase as the cards accommodate thousands of dollars. The question is, can you transfer money from a credit card to a debit card?
We shall check the possibility of transferring money from a credit card to a debit card later. Money transfer has become a vital aspect of our modern world. Today, businesses are receiving lots of payment through money transfer platforms that are mostly online. After the outbreak of the pandemic, most people opted for contactless payments whereby you can exchange goods for money without direct interaction, which helped control the spread of the disease to some extent.
Debit and credit cards are products of banks and credit unions. Some mobile money wallets such as PayPal, Venmo, and Cash App also issue the cards in collaboration with some banks to help in purchases and withdrawals of money. Getting a debit card is easy as you need to open a checking account and request a card. A credit card might be difficult to get due to various requirements.
How do I apply for a credit card?
After opening a checking account, you can request a credit card from a bank or credit union. The first thing is checking the available credit cards at the financial company of interest and then understanding what they require. After that, you can proceed to apply for the card either online or at the institution’s physical branch.
You can apply for secured or unsecured credit cards. Secured credit cards are the ones that require a deposit amount to get them. Various card issuers require you to deposit a particular amount of money to get the card. For the unsecured ones, you require credit scores to get them. Credit scores express your creditworthiness. The more your scores, the higher the credit limit and vice versa.
Once you apply for the card, you may get it at your branch or location. You then have to activate it before using it. You must deposit the security amount before getting and activating your card for secured credit cards. That means you must have a checking account to deposit the money.
How do credit cards work?
Credit cards allow you to borrow funds from your issuer. Once you get the card, you can shop online and at physical stores. You can also add the card to a mobile wallet to fund your transactions. Since you usually have a credit limit, you cannot use money beyond that.
It is also advisable to utilize at most 30% of your credit limit. That helps to boost your credit scores positively. Using too much of your credit limit translates to a high risk of defaulting on loans.
After using your credit card, you have to pay your debts after the end of every month. Your issuer requires you to pay your debt with some interest on top. It is important to note that your issuer reports your card usage to the credit bureaus every month. Therefore, the bureaus keep your card usage information to calculate your scores and compile a report.
Your issuer usually releases your deposit for use for secured cards after you have attained a certain number of scores. From there, you can apply for an unsecured credit card that goes with your current scores.
How do I get a debit card?
You can get a debit card if you apply from a bank, credit union, or mobile wallet. You must first apply for a checking account and then apply for a debit card. Unlike credit cards, you don’t need to deposit money for security, nor do you need any credit scores.
You can apply for a debit card online or at a mortar and brick branch. When you apply online, you will receive the card at your branch, and you will need to activate it as per the guidelines. When you apply at a branch, the officials will help you activate the card to begin using it. You must sign the card on the space provided to be valid.
How does a debit card work?
A debit card allows you to access money from your checking account. Some savings accounts also have debit cards, although their usage has limitations. Some institutions allow you to manage your card online using apps. That makes it possible to carry out various transactions online.
For your information, one can transfer money from a debit card to a prepaid card right from your app. Remember that your debit card directly uses your account balance and any transaction you make with the card reflects on your bank account.
Once your account balance is over, you must top up your account to continue benefiting from your card services.
How can you use a debit card?
There are various transaction activities that you can carry out with your card. They include the following.
i) Send money
Most financial companies allow you to send money online when using an app. Since the debit card connects to your account, you can quickly draw money to send it to others. However, the most usual money transfer method is using your checking account. By the way, you can make an instant bank transfer without a debit card by using your checking account online and at a physical branch.
ii) Withdraw money
A debit card allows you to withdraw money at an ATM point. You have to walk with your card to the ATM point, insert the machine on the slot, input your card’s PIN, and withdraw money among various activities listed on the menu. Most ATMs allow you to withdraw money for free. You need to ensure that you use an on-net ATM, and you are good to go.
You can as well withdraw funds over the counter. Here, you should take the card with you plus your identification document at any financial institution that accepts it. After everything is okay, the cashier then deducts money from your account and hands it over to you.
iii) Buy goods and services
You can utilize your debit card to buy goods and services online and in physical stores. When you use your card online, you should provide the card number, the expiry date, and the CVV. You do not need to provide a PIN, and thus it is advisable to purchase goods and services at trustable sites. You need to swipe at the register or tap the contactless reader to make your payment at the physical store.
Can you transfer finances from a credit card to a debit card?
We all know about bank-to-bank transfers, whereby you have to transfer money using the routing number and account number. Transferring funds from your credit card to a bank account is not as complicated as you need to move money to the account associated with the card.
For instance, there are various ways you can move money from a credit card to a bank account. The funds will still be available on the debit card. These methods include the following.
i) Use a convenience check
A convenience check is a particular type of check you request from your credit card issuer. It works like an ordinary check because you have to take it to your bank account and deposit it in your account.
The funds will reflect in your account and be available for your debit card. However, you should be aware of the transaction fees that are the percentage of the amount in question.
ii) Withdraw to a bank account
Most credit card issuers allow you to withdraw funds to your bank account. That is called a cash advance. Once they enter your checking account, the funds will also be available for your debit card. When withdrawing at a bank, you must carry your identity card to prove that you are the actual owner of the card.
iii) Transfer at the ATM
You do not have to walk to the counter to withdraw money from your card to your bank account. It is possible to transfer the funds at an ATM. You need to withdraw money from your account then deposit using the ATM deposit slot.
You first take a deposit slip, write your details such as the account name, date, amount to deposit, and any other relevant information, then put the money plus the deposit slip in an envelope, seal and drop it in the slot. After the deposit is complete, your funds will be available on your debit card.
Bottom line
Debit and credit cards are payment cards that allow you to buy goods and services online and at physical stores. You can apply for either card online or at a brick-and-mortar branch. Debit cards are easy to apply, but credit cards require credit scores or security deposits.
You can use the cards to buy goods and services online and in physical stores. A credit card allows you to transfer money to a debit card account.
