Can I link my credit card to my bank account?

Yes, one can easily link their credit card to their bank account via the official website or app of the bank.

Is it safe to link a credit card to a bank account?

When the process is done via the official platforms, it is generally safe, as they use tokenisation and encryption.

Is it a good idea to link a bank account to a credit card?

To manage finances and keep track of expenses, it is good to link your credit card to your bank account.

Is credit card linking mandatory?

No, it is not mandatory at all. It is the customer’s personal choice completely.

How to Link a Credit Card to a Bank Account?

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Linking your credit card with your current/savings bank account comes with several benefits. Some of these include easy bill payment, viewing monthly statements, and more. However, one should know how to link a credit card to a bank account. This is typically done via the official website or mobile app. You will only need your credentials and other relevant information. If you are not sure how to do it, continue reading to know how to link a credit card to your bank account.

Steps to Follow to Link Your Credit Card to Your Bank Account

Linking credit cards with bank accounts is a straightforward process. However, some steps may vary from bank to bank. Still, there are some general steps that almost every bank has. These are listed here:

Sign in to your credit card bank’s online/net banking portal.
Find and click on the ‘CREDIT CARD’ section.
Select the option ‘REGISTER NEW CARD’.
Enter all the necessary credit card details.
These include the credit card number, CVV, expiry date, and others.
Verify the details entered before hitting the ‘SUBMIT’ button.
Upon this, you will get an OTP on your registered contact number.
Enter it in the given space and ‘SUBMIT’.

Note: A bank may take several hours to verify the entered details. After successfully validating the provided information, the registration will be completed. After this, you can view balance, pending bills, etc.

What are the Benefits of Linking a Credit Card to Your Bank Account?

After linking the credit card to your bank account, you will get several benefits. Some of them have been explained here:

Easy to pay off all the pending credit card bills

By using your net banking credentials, you can open the dashboard of the net banking and see the pending credit card bills. At the same time, you can also pay those bills from the linked account.

View the statement of the credit card

By logging in, you can view current and previous credit card statements, along with other relevant details, such as the outstanding amount, minimum amount due, and more. In addition, you can view daily transactions through it.

Request an increase in the credit limit

Even though credit cards come with a specific limit. To increase it, you can use your net banking to request an increase. If there are any pre-approved increase offers, you can verify them online without any hassle.

Quick Upgrades

When your credit card is linked to your bank account, you can also request easy and quick upgrades. For this, you can send a request online without connecting with the bank’s customer support representative.

Keep a watch on the credit card offers

A bank typically offers via its online banking pages. If you also want to make the best use of those offers, you can use your internet banking. By keeping a check on the latest offers and updates, you can maximise the benefits attached.

Convert all transactions into EMIS

In India, almost every credit card comes with an easy EMI conversion option. By using your internet banking, you will be able to utilise it. When your credit card is linked, you will not require calling or sending any request to the bank.

What to Avoid While Linking Your Credit Card with a Bank Account?

Linking your credit card to your savings or current account offers many benefits. However, you must avoid the following mistakes if you want to maximise the benefits attached:

Transactional and financial mistakes

When you use a credit card to transfer money to your bank account, it is generally considered a cash advance.
As a result, it will incur a rate of interest along with a processing fee of around 2.5% to 3%.
Peer-to-peer transactions will also incur interest, which accumulates from day one.
Every bank offers a limited number of transactions. Consider this to avoid further issues.
The auto-pay feature can lead to overspending. Be mindful.

Never use an unsecured or public Wi-Fi network while linking a credit card.
It is recommended not to share card-related details on third-party apps.
Do not save credit card details on any unverified platforms.
Not reviewing the monthly statement increases the risk of missed and fraudulent transactions.

Auto-pay mistakes

Never link your credit card to a bank account that has insufficient balance.
It can result in a bounced payment when auto-pay is set, and there is no balance to pay the bills.
A debt trap will open when you only pay the minimum amount.
The remaining balance will increase as the interest rate is constantly applied.

Conclusion

Linking a credit card to a savings or checking bank account offers several benefits. However, one should also learn about the mistakes to avoid before or after linking the card. Lastly, contact the relevant bank to learn more about the process and ensure an integrated, seamless banking experience.