Table of Contents
Credit cards have changed the way people look at the credit lines or availing loans in all the nations. There are several features that are accessible with the help of the credit cards; one of these features on the credit card is the cash advance feature. It offers instant liquid cash to a cardholder. Just as another loan, credit card cash advance. It does’t need any kind of approvals from the particular bank and doesn’t need other documentation for the credit loans. It is easily withdrawn from an ATM, which is located within a country or outside the country. These credit cards’ cash is available with some terms and conditions; therefore, it is mandatory that each credit card holder must know all these norms.
This post has mentioned all the necessary details about how to get cash from a credit card along with the additional information about charges, fees, and other details.
What is the meaning of credit card cash withdrawal?
A cash advance of credit card is one of the technical terms which is used for the credit card cash withdrawing methods. It grants to withdraw cash to the credit cardholders with the help of credit cards from ATM of a bank. There are several people who typically use the credit cards for card transactions, but this card can be used for cash withdrawal facility too. With the help of this facility, cardholders are able to withdraw the cash as per their requirement within their permisses and repay them along with the other changes and interest.
These features are not accessible to all these credit cards, and it has permissible limits for withdrawing the cash, but the additional finance charges can vary card to card. Therefore, all credit card holders require to know all such kind of things that are applicable to the credit cards.
This can be done either by checking the norms or terms and conditions of their cards. Besides this, one can call the customer care service center of a bank and get the details about how to get cash from a credit card and what are their terms and conditions for it.
What is the finance charges for credit card cash withdrawal
There are some charges on these credit cards, just like regular card transactions. The rate depends on the monthly percentage rates and charges from the transaction’s date till the repayment would be made completely. These interest rates lie between 2.5% to 3.5% each month, which are applied to all cash advances.
The rate of interest also varies fro bank to bank and card to card, and it will be informed to the cardholders during the time of card issuing. The rate is subject to change and dynamic at the bank’s discretion. Apart from the external parameters which affect the rate of interest on cash advances, frequency of spends, usage of the card, repayment behaviors, and much more are the other specific card parameters that can impact the rate of interest charges on a specific card. Therefore, it is necessary to know the interest rates of the banks, along with the information about how to get cash from a credit card.
The interest rate of the top five banks on credit card cash advance
|Name of the bank||Monthly interest rate||Annual interest rate|
|HDFC Credit Card||1.99%-3.5%||23.88%-42%|
|Citibank Credit Card||3.1%-3.5%||37.2%-42%|
|ICICI Credit Card||2.49%-3.5%||29.88%-42%|
|SBI Credit Card||Up to 3.35%||Up to 40.2%|
|Axis Bank Credit card||2.95%-3.5%||35.4%-42%|
How to get cash from a credit card?
Getting the cash from a credit card is the same as that of getting the cash using the debit card from the ATM machine. The initial step is that one requires to go to their nearest ATM kiosks along with credit card and follow the guidelines to withdraw the cash and get the money in your hand. The withdrawal of the cash from the credit cards can be made at any of the banks’ ATM which means it is not mandatory that you have to go to the same bank that issues your card, you can get money from other bank’s ATM too. But, some of them might charge different withdrawal charges for using their ATMs. Some of them also put a limit for the minimum and maximum amount of cash for withdrawing per day or per transaction.
Therefore, we can say that it is necessary to know all the terms and conditions that are applied to your credit cards along with the charges fee and rates before accessing the facility of card advances. Besides this, you must know the cash limit available to you on the cards before proceeding to the withdraws if one over limits the transactions, the bank can charge the over-limit fees simultaneously with the finance charges.
Benefits and drawbacks of credit card cash advance
There are various pros and cons of the cash advance besides some other attractive features. But, if one uses the card for emergency funds and secure themselves from cash crunches, then one can easily take advantage of these cards for cash withdrawals. Let’s check the advantages and disadvantages of the features in a detailed manner.
Advantages of credit card cash advance
This is the primary pros of the credit card cash advance is that it can offer instant money into the liquid form. Everyone knows that ATMs are available at each nook and corner and accessible 24*7 within and outside the nation, one can easily get the cash at any time and around the globe.
No documentation, no approval:
As there is another form of credit like personal loans and other kinds of loan, the cash advance neither needs any document, nor any other kind of approval from a bank to avail of this facility. You just require to use a specific card issued from the bank and go to the nearest ATM, follow the instruction for how to get money from a credit card, and withdraw the money as per your requirement.
A decent track record, consistently spending patterns, repayments without getting late, and default could make the cardholder eligible for a limit increment on their credit cards. When a particular bank approves the limit increment request on your credit cards, and the cash limit can automatically get increased.
Disadvantages of credit card cash advance
Charges and fees:
Each time the cash advance facility would be availed, the fee can be levied that can further lead to extra finance charges. These charges can be charged from the transaction’s date to the date of repayment till completely.
Rate of interest:
The rate of interest on the cash advance is the same as other card transaction’s interest charges. But, the interest can be charged from the transaction’s date till the full repayments that make it even more expensive.
The cash withdrawal method is not eligible for any kind of reward point. It does not matter how big the withdrawing is, and one does not get reward points for cash advance credit cards.
Other parameters that lead to the expensiveness of these credit cash advances is the interest rate. It can be altered from the transaction’s date to the full repayment date. There is not any interest-free duration, and it would continue until the payment does not fully pay. Therefore, it is necessary to know the interest rate as well as how to get cash from a credit card.
This blog has provided all the information about how to get cash from a credit card. It involves the meaning of cash withdrawal, finance charges, interest rates , and benefits and drawbacks of card cash advances. One can use this information for their benefits to get cash in their emergencies.