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Can We Withdraw Money From Credit Card?

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Banking
0 2022-09-15T19:08:01+00:00
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I personally feel that credit cards have emerged as one of the most crucial financial instruments. Now credit cards have more features and perks than ever before, making them more of a need than a luxury. The best feature I find in a credit card is that credit cards enable you to withdraw money from an ATM, similar to what a debit card does, in addition to allowing you to make payments at a variety of physical and online merchant establishments. If you are wondering “can we withdraw money from credit card” then, you are in the right place. I will tell you all about it here. Use your credit card to make utility bills payment via NoBroker and stand a chance to win rewards. Now pay your monthly rent using your credit card via NoBroker and earn cashback.

Can I withdraw money from credit card?

Cash withdrawals via credit cards are known officially as "Credit Card Advances." However, there are a few things to keep in mind about credit card cash withdrawals:
  • A credit card's primary function is to be used for card transactions; the ability to withdraw cash is only an added perk provided by the banks.
  • Users are only permitted to withdraw money from their credit card up to the permitted limit.
  • Banks may have different maximum credit card cash withdrawal limits.
  • When using a credit card, users must pay additional fees in addition to interest on the amount withdrawn.
  • Not all banks or credit card companies provide the ability to withdraw money using a credit card.

Can we withdraw money from HDFC credit card: Charges on Credit Card Cash Withdrawal

Users must pay additional fees when withdrawing cash with their credit card because it is an optional feature, not a standard one, that banks offer. The term "credit card advance fee" refers to these additional costs. A per cent of the funds withdrawn is billed as a cash advance fee each time a user uses their credit card to make a cash withdrawal.
  • Banks typically charge a minimum of Rs. 300 to Rs. 500 as the cash advance fee and 2.5% to 3% of the amount withdrawn for each credit card cash withdrawal transaction.
  • The cash advance fee will be included in your billing cycle and added to your following month's payment.
  • In addition to the cash advance cost, there is a finance charge that is applied at a similar rate to that on the amount taken. From the withdrawal date until the day the complete amount is paid, this fee will be imposed.
  • It's crucial to understand that even if you employ your credit card to make many cash withdrawals in a single day, you will still be required to pay a cash advance fee based on the amount of each withdrawal.

What are Finance Charges on Credit Card Cash Withdrawal?

Now that you know can we withdraw money from ICICI credit card or any bank’s credit card, let me tell you about the finance charges. Cash withdrawals made with credit cards are subject to fees. According to each bank, these fees range from 2.5% to 3% of the entire value withdrawn. The real interest rate on cash advances differs between banks and between card types. It is significant to note that information on credit card cash withdrawals is provided to the cardholder at the moment the card is issued. To avoid any unpleasant surprises later, it is highly advised to carefully read all the conditions and terms prior to actually purchasing a credit card.
Interest Levied Credit Card Cash Advance by Top Five Banks
Bank Name Interest rate on credit card cash advance
Monthly rate Annual rate
HDFC Credit Card 1.99% - 3.5% 23.88% - 42%
Axis Bank Credit Card 2.95% - 3.5% 35.4% - 42%
SBI Credit Card Up to 3.35% Up to 40.2%
Citibank Credit Card 3.1% - 3.5% 37.2% - 42%
Now you know the answer to “can we withdraw money from credit card”. Read More: How Can we Withdraw Money from Credit Card?  How to Withdraw Money From Credit Card? How to withdraw money from a capital gain account? Can We Withdraw Money from Fixed Deposit before Maturity?

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