Credit Card Cash Withdrawal Charges

Credit Card Issuer	Interest rate
Bajaj Finserv RBL Bank Credit Card	Up to 3.99% per month, exclusive of GST
ICICI Credit Card	Up to 3.67% per month
Axis Bank Credit Card	3.60% per month
SBI Credit Card	Up to 3.50% per month

Disclaimer: The interest rate is subject to change at the issuer’s discretion.

How to Withdraw Money Via a Credit Card

If you are wondering how to withdraw money from a credit card, rest assured that the process is easy. A credit card cash withdrawal follows the same process as using a debit card. Just follow these steps: 

 

• Visit the nearest ATM, preferably your issuer’s ATM

• Insert the credit card into the slot 

• Enter your credit card PIN

• Choose the option for cash withdrawal

• Enter the amount you want 

• Click ‘Submit’

• Collect the cash and the receipt

What is the Impact of Credit Card Cash Advances on Credit Score?

It is not the credit card cash withdrawal but the outstanding amount or default in repayment that affects your credit score. Regardless of how big or small the amount is, not repaying the withdrawn cash can decrease your credit score. 

 

Additionally, when you don’t repay your credit card dues, they attract charges and penalties. Generally, credit card cash withdrawal charges for late payment are high and having an outstanding amount for a long period can further increase your total dues. 

 

The higher your outstanding amount, the more severe may be the impact on your credit card. So, make sure that you repay your credit card dues, including cash withdrawal, on time. 

 

If you find that you may not be able to make the complete payment, try and pay the minimum amount to avoid any significant negative impact on your creditworthiness. 

Advantages & Disadvantages of Credit Card Cash Withdrawal

Listed below are some advantages and disadvantages of credit card cash withdrawal that you should be aware of.

1. Advantages

• Instant Cash: By opting for credit card cash withdrawal, you can get access to the funds you need in a matter of minutes. Simply visit an ATM and carry out the request. Moreover, some issuers levy no charges if the withdrawal is done through the issuer’s ATM. 

• Easy and Quick Access: Not only is the process of withdrawing cash with a credit card simple, but it is also hassle free. Although it is a form of credit, it does not require any additional documentation or application. All you need is a credit card and you are good to go. 

• Availability of Limit Enhancement: Credit card issuers generally increase or upgrade the features and benefits of your card if you make timely repayment. By using your card responsibly and regularly, you can get an upgrade in the credit card cash withdrawal facility too. 

2. Disadvantages

• Fees and Charges: Each time you make use of the credit card cash withdrawal facility, a minimal fee is charged by the bank. This adds to the credit card charges you pay.

• High Interest Rates with No Interest-Free Period: There is also an interest rate levied on cash withdrawals. This is generally high and levied from the day you withdraw the money until you repay it. This also means that there is no interest-free period that is generally available on other transactions.

• No Reward Points: Generally, credit card cash withdrawals are not eligible for any reward points or cashback no matter how high the amount.

What are the Benefits of the Credit Card Cash Advance Feature?

The cash advance facility can be very beneficial for credit card holders. Here’s an overview of a few advantages that you get to enjoy. 

• Instant Access to Cash

The cash advance facility can be very useful during emergencies. Since ATMs operate on a 24/7 basis and can be found almost everywhere, you have instant access to cash at all times. 

• No Need For Any Approvals or Documentation 

With loans and other credit facilities, you’re generally required to submit extensive documentation and wait for approvals which may take a few days. With the credit card cash advance feature, you don’t have to do any of that. You can simply head to the nearest ATM and use your credit card to withdraw cash instantly. 

• Flexibility 

With credit card cash advances, you can withdraw just the amount you need. Also, there’s no limit on the number of withdrawals you can make. This gives you the freedom to get cash as and when you need it. With other forms of credit, however, this may not be possible. 

 

That’s not all. As you continue to use your card and repay your obligations diligently on time, your credit card issuer will provide you with the option to enhance your credit limit. When you opt for it, your total credit limit will get enhanced instantly, which will also end up increasing your cash advance limit. 

 

DISCLAIMER: The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial advice or endorsement of any sort. The information including interest rates or fees and charges with regard to any credit card, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks or NBFCs. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any application or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, trade names, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.