Credit Card Cash Withdrawal Charges - How to Withdraw Cash from Credit Card?

Like a debit card, you can use your credit card to withdraw cash from ATMs up to a certain limit. This is popularly known as credit card cash withdrawals and is an additional feature that many credit card issuing companies offer, sometimes with or without additional charges. 

What is Credit Card Cash Withdrawal?

Credit card cash withdrawal or credit card cash advance is the process by which cardholders can withdraw cash using their credit cards. Cash withdrawal is an additional benefit that a bank offers to cardholders. Under this, a person can withdraw cash only up to a particular limit. He/she must repay the same with interest and other charges. 

It is also important to note that not all cards offer this benefit. Also, the permissible limit for cash withdrawal might vary from bank to bank. Therefore, before applying for a credit card, consider reading the terms and conditions to get a detailed knowledge of credit card cash withdrawal charges. 

Credit Card Cash Advance Limit vs Credit Limit

The table below states the difference between the credit limit and cash advance limit: 

What are Credit Card Cash Advance Fees?

Banks or NBFC will charge you an additional fee for every cash withdrawal using a credit card. This fee is popular among credit card issuing companies as credit card withdrawal charges or cash advance fees. 

This charge is a small percentage of the total sum you plan to withdraw. The credit card cash withdrawal charge might range from Rs.300 to Rs.500. These charges are applicable from the withdrawal date. 

How to Withdraw Cash Using Credit Cards?

The process of withdrawing cash using a credit card is quite similar to cash withdrawal using a debit card. To withdraw cash using your credit card, visit the nearest ATM location with your credit card and follow the usual cash withdrawal procedure. You can visit any ATM for credit card cash withdrawal. However, you must note that your credit card company might charge different amounts for using ATMs of other banks. 

Impact of Credit Card Cash Advance on Credit Score

Opting for a credit card cash advance will not hurt your credit score directly. However, it might impact the score indirectly if you do not use this feature judiciously.

Furthermore, your bank will not keep a separate record of your credit card cash advance. The outstanding amount will be considered along with your other credit card expenses. Also, the high-interest rate and additional fees make the monthly repayment of dues difficult. It might lead to the risk of defaulting and missing dues owing to a lack of funds. This can hamper your credit report and score. 

Advantages of Credit Card Cash Withdrawal

Below are the advantages of credit card cash withdrawal feature:  

• You do not have to go through any additional documentation or approval process to withdraw cash using a credit card.
• There is no restriction on how you wish to spend the cash using credit card cash withdrawal. 
• This is a more hassle-free and quicker option for emergency cash requirements as opposed to personal loans. 
• With credit card cash withdrawal, you can get instant cash to meet emergency needs.

Disadvantages of Credit Card Cash Withdrawal

Besides the above advantages, here are a few disadvantages which you must also consider before opting for this feature: 

• Credit card holders will not get any reward points for exercising this feature. 
• Banks or NBFCs will charge interest rates from the time you withdraw cash till repayment of dues.
• There is no grace period available without an interest rate. 
• The additional credit card cash withdrawal charges are high and can increase your due amount.

Credit card ATM Withdrawal Charges

The credit card cash ATM withdrawal charges will vary from bank to bank. However, usually, they charge around 2.5% to 3% on the total amount. This means the bank will charge at least Rs.300- Rs.500 as ATM withdrawal charges when using this feature. 

Cash Advance Fee Charged by Top Banks

The table below will take you through credit card cash withdrawal charges of top banks: 

How to Withdraw Cash from Credit Card Without Charges?

To withdraw money using the cash advance feature with your credit card, consider applying for credit cards with no cash advance fees. This will save you from paying additional withdrawal charges, which might increase your outstanding amount. 

You can accumulate a minimal interest rate by opting for credit cards with no cash withdrawal charges or additional charges. This will make it easier for you to pay the debt on time without defaulting. 

Top Cards with Lowest Charges

Now that you know how to withdraw money using a credit card without charges, the table below will take you through selective credit cards with very low cash withdrawal charges. This will help you choose the right card according to your financial standing: 

Credit card cash withdrawal charges allow you to meet urgent financial requirements. Unlike personal loans, you do not need to go through an application process or wait for your card issuer to sanction a loan to access the money. You only need to take the card to your nearest ATM and withdraw the required amount. Furthermore, you can easily connect with your respective bank for any queries regarding the credit card cash advance facility for your card. 

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