17 January, 2024
A Credit Card is a convenient payment tool that lets you make purchases for which you can pay later. Your card issuer will set a credit limit, which you can utilise to shop, pay bills and more. Another good-to-know feature of Credit Card is cash withdrawal. Like how you would use a Debit Card to withdraw cash from an ATM, you can also use a Credit Card to withdraw cash. There are, however, certain conditions associated with such withdrawals. In this article, you can get information on how to get cash from your Credit Card.
How to withdraw cash from Credit Card?
Here’s a step-by-step process on how to withdraw money from a Credit Card:
You need to locate an ATM since you can withdraw cash from only an ATM.
In the ATM card slot, insert your Credit Card.
Choose ‘cash advance’, ‘cash withdrawal’ or similar options.
Enter the withdrawal amount.
Confirm the transaction by entering the PIN. With some cards, you may also receive a one-time password (OTP) on the registered mobile number, which you need to enter to validate the transaction.
Once the transaction is validated, the machine will dispense the cash.
Collect the cash and the Credit Card.
Once the transaction is complete, you will receive a notification from your card issuer regarding the used credit limit and the available credit limit.
Should you withdraw cash using your Credit Card?
The ability to withdraw cash using your Credit Card can come in handy during emergency situations. That said, there are no restrictions on why and when you should utilise this feature. You should, however, consider several factors associated with Credit Card cash withdrawals:
What is the cost of withdrawing cash with your Credit Card?
You ought to know the following costs you will incur once you withdraw cash with your Credit Card:
Interest rate
Typically, when you don’t pay your Credit Card bill on time, interest is applicable on the outstanding balance. With cash withdrawals too, interest will be applicable to the withdrawn amount. Interest will be applied from the date of withdrawal till the withdrawal amount is repaid in full.
Cash advance fee
These are charges that you incur when you withdraw money from the ATM using your Credit Card. The cash advance fee is typically a percentage of the withdrawal amount, usually subject to a maximum amount. If you are an HDFC Bank Credit Cardholder, you will incur a transaction fee of 2.5% or ₹500, whichever is higher. This percentage does not apply to all cards.
When you carry forward the cash advance, finance charge is calculated by the average daily balance method. The charge will apply to not only the balances that are carried forward but also to new transactions.
Typically, your card issuer shall notify you of the charges via the welcome kit.
Do cash advances impact credit score?
As long as you repay your debt on time, your credit score will not be impacted. However, when you take a cash advance, it will be billed to you in the upcoming billing cycle. Along with the withdrawal amount, you also need to pay interest and applicable finance charges. This, along with Credit Card transactions made during the billing cycle, may result in a substantial bill amount. Higher bill amounts may result in late payment or defaulting. If you default on your Credit Card bill payments, the information is passed on to credit information companies that determine your credit score. Therefore, irregularities in debt repayments can result in lower credit scores.
Bottom line
Now that you know how to withdraw money from a Credit Card, ensure you do so when you absolutely have no other means to deal with an expense. Unlike regular Credit Card transactions that incur interest upon not paying bills on time, Credit Card cash advances incur interest starting from the day of transaction. To alleviate the stress of bill payment, ensure you withdraw lesser amount and repay the amount at the earliest.
Enjoy exclusive perks with HDFC Bank Credit Cards
At HDFC Bank, we offer an array of Credit Cards, and you can find a suitable card for you. You can earn reward points, cashback and other offers with your Credit Card spends. You can conveniently pay your Credit Card bills through our platforms such as NetBanking, MobileBanking, PayZapp and MyCards. Alternatively, you can also pay your bill via ATMs and cheque and cash deposits. This way, you have access to numerous platforms to repay your cash advance debt and pay Credit Card bills on time.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circ*mstances. Credit Card approvals at the sole discretion of HDFC Bank Limited. Credit Card approvals is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.
FAQs
You just go to an ATM and take the cash that you need, within the allocated limit. It doesn't need any special approval from the bank or anything. And you pay it back along with the charges that come with cash withdrawals. Every card has a credit limit – that is the maximum amount that can be spent on that card.
How do I withdraw money from my credit card step by step? ›
Insert your credit card into an ATM. Enter your credit card PIN. Select the “cash withdrawal” or “cash advance” option. Select the “credit” option, if necessary (you may be asked to choose between checking, debit or credit)
How to get money from your credit card to your bank account? ›
How to transfer funds from a credit card to a bank account
- Sign into your online banking (app or desktop).
- Select Transfer.
- Choose the credit card for Pay From, and the bank account for Pay To.
- Enter the amount and confirm.
- Confirm you approve the cash advance.
- Wait a few minutes and check the bank account.
Many credit card issuers use a separate cash advance limit as part of your overall credit limit, such as a $10,000 credit limit with $2,000 of that limit available for cash advances. A daily limit is often imposed, usually a few hundred dollars.
How to transfer money from credit card to bank account instantly? ›
Net Banking: If your Bank provides net banking services you can log in to your Account and access the 'Credit Card' section. Then choose the 'Transfer' option and enter the amount you want to transfer to your Bank Account. Follow the prompts and complete the transaction.
What is the maximum cash withdrawal from a credit card? ›
How much of your limit you have left to use: The amount you have left to spend on your credit card can affect the amount you can withdraw from your credit card. Your credit card's cash advance limit: Most providers set a maximum percentage of your credit limit that you can withdraw from, like 90%.
How do I get cash from my credit card without cash advance? ›
Ask your card issuer for convenience checks. These are checks you can write that are tied to your credit card account. Wire money to yourself through a money transfer service, such as Western Union, and pay with your credit card. Purchase a money order with your credit card, if you can find a merchant that allows this.
What happens when you withdraw money from a credit card? ›
In addition to repaying the money you withdraw, you'll need to pay additional fees and interest as well. The fees for a cash advance can be substantial. Depending on your credit card terms, the company may charge a flat fee for withdrawing money, or they'll charge you a percentage of the cash advance.
Do you need a PIN to withdraw money from a credit card? ›
Two types of credit card transactions typically require a PIN: Purchases at some stores when you're traveling abroad. A cash advance at an ATM.
How do I send myself money from my credit card? ›
How to Transfer Money From a Credit Card to a Bank Account
- Cash Advances. You can use your card at an ATM to perform a cash advance. ...
- Convenience Checks. Sometimes, credit card companies will give you convenience checks. ...
- Money-Transfer Services. ...
- Venmo. ...
- PayPal. ...
- Amazon Pay. ...
- Square's Cash App.
If you do need to transfer funds into your bank account, one option is to use a credit card with a money transfer facility. This can be useful for paying off short-term debt, such as a small overdraft or if you need a little extra cash in your account to pay unplanned expenses.
Which app is best for transfer money from credit card to bank account? ›
MobiKwik app is the safest of all the platforms to transfer your money from credit card to bank account with bare minimum charges.Do a quick online money transfer with MobiKwik, just download the app or log in to the website and follow the given steps.
How to withdraw from credit card to bank account? ›
Follow the steps below:
- Step 1: Place a call to your credit card company.
- Step 2: Request a funds transfer.
- Step 3: Verify the amount you want to transfer to your bank account.
- Step 4: Provide the necessary bank account details and other required information.
How to get cash from a credit card
- Insert your credit card or use a cardless ATM option to access your account.
- Enter your credit card PIN. ...
- Select the cash advance or withdrawal option when prompted and follow the instructions on the ATM screen.
- Enter the amount of cash you plan to withdraw.
Cash advances are typically capped at a percentage of your card's credit limit. For example, if your credit limit is $15,000 and the card caps your cash advance limit at 30%, your maximum cash advance will be $4,500.
Can I take all the money off my credit card? ›
Yes, you can withdraw cash using a credit card, though it is expensive to do so. However, there may be situations where you're unable to withdraw cash from an ATM using your credit card because you've reached the credit limit for a cash advance on your card.
How do I clear my credit card amount? ›
1. Find a payment strategy or two
- Pay more than minimums.
- Take the debt snowball approach.
- Use the debt avalanche method.
- Automate your payments.
- Look into 0% balance transfer credit cards.
- Consider a personal loan.
- Think about a debt management plan.
- Consider filing for bankruptcy.
How to withdraw cash from Credit Card?
- You need to locate an ATM since you can withdraw cash from only an ATM.
- In the ATM card slot, insert your Credit Card.
- Choose 'cash advance', 'cash withdrawal' or similar options.
- Enter the withdrawal amount.
- Confirm the transaction by entering the PIN.
