Know Credit Card Cash Withdrawal Important Facts

Knowing the charges for credit card cash withdrawal is a must before you use this facility. Cash withdrawal via a credit card can be an ideal way to access funds when you are in need, but it comes at a cost applicable from the date you make the withdrawal. 

This charge also differs from the fees levied on other transactions post the interest-free period. Read on to learn more about withdrawing cash from credit cards, the charges applicable and the benefits and drawbacks of this facility. 

What is Credit Card Cash Withdrawal?

Cash withdrawal from a credit card is a cash advance facility ideal for emergencies. 

Just like a debit card, you can easily withdraw funds from an ATM using your credit card, depending on the sanctioned limit. The process of cash withdrawal from a credit card is simple and hassle-free, as you don’t have to get prior approval from the issuer. 

However, you will be charged higher interest when you withdraw cash using a credit card. This is why knowing the fees and terms beforehand can help you make the right decision. 

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What are Credit Card Cash Withdrawal Charges? 

The charges for credit card cash withdrawals vary from one credit card issuer to another and depend on the amount you withdraw. Also referred to as the credit card advance fee, this amount varies between 2% – 5% of the withdrawn amount, ranging between ₹300 and ₹500 approximately. 

Credit card providers will also levy a finance charge that gets added to your bill in the next cycle. Note that the charge is levied from the day you withdraw cash until you repay the amount in full. 

Apart from these charges, you will have to pay a fee if you withdraw cash from the ATM of a bank other than your card provider. Depending on the ATM operator, this one-time fee can vary between ₹100 and ₹150 per withdrawal. 

So, while you can get access to cash via credit cards when required, be mindful of the charges applicable. 

Also Read: Transfer Cash To a Bank Account From a Credit Card

How to Get Money Using a Credit Card

The process to withdraw cash using your credit card is similar to that of a debit card. Here’s what you need to do:

• Step 1: Go to your nearest ATM 
• Step 2: Insert your credit card into the machine 
• Step 3: Enter your credit card PIN 
• Step 4: Select the ‘Cash Withdrawal’ option
• Step 5: Enter the amount 
• Step 6: Collect the cash 

Benefits and Drawbacks of Credit Card Cash Withdrawal

Now that you know about all the charges for credit card cash withdrawal and how to withdraw cash using it, here is a quick overview of its advantages. 

• Provides quick access to cash during emergencies
• Helps you withdraw funds up to 20% – 40% of your credit limit (based on the issuer’s terms)
• Does not impact your credit score

Here is a brief snapshot of the disadvantages of withdrawing cash using credit cards:

• Issuers levy multiple fees and charges for this facility 
• Interest charges for the cash withdrawal add to your total billing amount 
• There is no interest-free period when you withdraw cash using a credit card

In conclusion, cash withdrawal from a credit card can be helpful during times of need, but you must evaluate the pros and cons before you proceed. 

If you are scouting for a new credit card, consider applying for a Fibe Axis Bank Credit Card. This is India’s first numberless credit card that links to your UPI ID and reduces instances of fraud. 

Furthermore, you can enjoy up to 3% cashback on all transactions as well as dining discounts and free access to domestic airport lounges. With no joining and annual fees, it also comes with a nominal cash withdrawal fee of 2.5% of the withdrawal amount. Download the Fibe Personal Loan App now or register on our website to apply for the Fibe Axis Bank Credit Card now! 

FAQs on Credit Card Cash Withdrawal

Can I withdraw cash from a credit card?

Some credit card providers allow you to withdraw cash on credit cards without submitting any additional documents. However, checking the fees and charges before opting for this facility is important. 

Is there any limit to withdrawing cash from a credit card?

Issuers allow 20% to 40% of your credit limit as the acceptable limit of cash withdrawal from a credit card. However, all issuers have a variable permissible limit, so check with your credit card provider. 

Why do credit cards charge for cash withdrawals?

Generally, credit cards allow you to make cashless transactions online and offline. Cash withdrawal is an additional facility, and each time you withdraw funds through it, your credit limit is reduced. So, issuers levy charges for credit card cash withdrawals and add them to your total outstanding amount.