How to Withdraw Cash from A Credit Card?

• The process to withdraw cash from a credit card is simple and quick.
• Visit the nearest ATM, insert your credit card into the card slot, and follow the instructions.
• Credit cards offer financial comfort during emergencies through the cash withdrawal feature.
• You can repay the amount withdrawn and pay the applicable interest and charges on time to protect your credit score.

When was the last time you withdrew money from an ATM? Did you use your credit card?Yes, you read it right. We are talking about credit cards and not debit cards.While many are aware of using debit cards to withdraw money, only some know that a credit card can also be used to withdraw from the ATM.Learning how to withdraw cash from a credit card is an interesting feature to explore. Through this blog, we explain the withdrawal process and bring to light other important things you should know.

You can take money from a credit card through a straightforward and time-saving process. Here are the steps:

• Step 1: Visit the nearest ATM to withdraw cash from a credit card.
• Step 2: Look for the card slot in the ATM and insert your credit card.
• Step 3: Select the option indicating cash withdrawal and mention the amount you wish to remove. Some ATMs may reflect this as the ‘Cash Advance’ option.
• Step 4: Enter the PIN to confirm the transaction. Certain cards send an OTP to your registered mobile number for validation purposes.
• Step 5: Once the transaction is validated, the ATM dispenses cash.
• Step 6: Collect the cash and don’t forget to take your credit card back.

There are usually no restrictions to take money from a credit card. You can withdraw the requisite amount subject to the applicable conditions. It is a good option to arrange for cash, especially during emergencies.Also, this option allows you to get the required funds instantly without any documentation. However, it is essential to keep in mind the related charges applicable to withdrawing cash from a credit card.

Cash withdrawals from credit cards are subject to interest and processing charges as explained below:

• Interest: You need to pay the applicable interest on the cash withdrawn from your credit card. Such interest is payable on the amount withdrawn and is calculated from the date you withdraw cash from a credit card until the amount is repaid.
• Cash Advance Fees: When you take money from a credit card, it attracts fees, normally referred to as cash advance fees. They are calculated at a certain percentage of the amount you have withdrawn.

Your next billing statement usually reflects the details of the amount withdrawn, the cash advance fees, and the interest levied.You can find more details of the applicable fees in the welcome kit that comes with your credit card. It should bear the relevant details. Also, do check with your card issuer to confirm any updated charges.

Timely repayments do not impact your credit score; they contribute to building your credit history.Once you take money from a credit card, it is billed in the next billing cycle. In addition to the amount withdrawn, you need to pay applicable interest and other charges. This is over and above any other credit card transactions during the billing cycle.Thus, you may have to settle a higher bill amount.If you fail to repay on time, your credit score will be affected. As you already know, a good credit score is necessary for loan processing. Thus, you must pay all your credit card bills on time. Also Read: Check Your CIBIL Score for Personal Loan in 3 Easy Steps

You can use your credit card to get instant cash, subject to the applicable conditions. With the cash withdrawal facility, a credit card gives you financial comfort during emergencies. However, you must consider the associated charges, and ensure that the amount withdrawn and the related charges are paid on time.You can also enjoy several other benefits. From cashback to lounge access, you can use your credit card wisely to earn reward points and save on expenses.Haven’t got a credit card yet? Apply today and learn the smart way of expense management. Also Read: Why is credit card important? 6 Use of credit card