How to Withdraw Cash From a Credit Card & Cash Withdrawal Charges
Credit cards are commonly used for purchases, but did you know that they can also be a source of quick cash in emergencies? Withdrawing cash from a credit card, known as a cash advance, can be helpful, but it comes with some key considerations. In this guide, we’ll explore how to withdraw cash from a credit card, how to get cash on a credit card, and other ways to send money from your credit card to your bank account—sometimes even without fees.
How to Withdraw Cash From a Credit Card
Withdrawing cash from your credit card is simple but comes at a cost. This process, known as a cash advance, allows you to take out money using your credit card. Here’s how you can do it:
- ATM Withdrawal: You can withdraw cash using your credit card at an ATM, provided your card has a PIN (Personal Identification Number). You’ll be charged a cash advance fee and interest will start accruing immediately.
- Bank Withdrawal: Visit a bank that accepts your credit card and request a cash advance. Similar to ATM withdrawals, you’ll be charged fees and interest rates, so it’s important to consider these costs before proceeding.
- Convenience Checks: Some credit card issuers provide convenience checks that you can use to withdraw cash from your credit card account. These checks work like regular checks and can be cashed or deposited into your bank account.
How Do I Get Cash from My Credit Card?
The answer is straightforward: you can get cash from your credit card by either withdrawing it at an ATM, through a bank, or using the convenience checks provided by your card issuer. However, how to get cash on a credit card requires careful planning due to high fees and interest rates that are usually applied from the moment of withdrawal.
Steps to Get Cash on a Credit Card:
- Insert your credit card into an ATM and enter your PIN.
- Select the cash advance option and enter the amount you wish to withdraw.
- The ATM will dispense cash, and you will incur a cash advance fee, which could range from 3% to 5% of the transaction amount.
It’s important to note that cash advances often come with higher interest rates than regular purchases and can start accruing interest immediately, unlike credit card purchases that usually have a grace period.
Credit Card Cash Advance Limit vs Credit Limit
The table below states the difference between the credit limit and cash advance limit:
| Credit Card Cash Advance Limit | Credit Limit |
| This is the maximum amount of cash a person can withdraw using his/her credit card. | This is the maximum amount you can spend with your credit card. |
| This is an additional benefit which selective credit card issuers offer. | Every credit card user receives a credit limit, which they must remember while using their credit card. |
| Transactions for cash advances depend on your credit limit. | You cannot make any more credit card transactions after exceeding the credit limit. |
| Banks might charge additional fees to withdraw cash using a credit card. | Banks will not charge any penalty or additional charge for spending within the credit limit. |
Credit card ATM Withdrawal Charges
The credit card cash ATM withdrawal charges will vary from bank to bank. However, usually, they charge around 2.5% to 3% on the total amount. This means the bank will charge at least Rs.300- Rs.500 as ATM withdrawal charges when using this feature.
Cash Advance Fee Charged by Top Banks
The table below will take you through credit card cash withdrawal charges of top banks:
| Credit Card Issuing Banks | Credit Card Advance Charges |
| State Bank of India | 2.5% |
| Yes Bank | 2.5% |
| Kotak Mahindra Bank | 2.5%-3% |
| ICICI Bank | 2.5%-3% |
| HDFC Bank | 2.5% |
| Bank of Baroda | 2.5% |
| HSBC Bank | 2.5% |
| Standard Chartered Bank | 3% |
| Axis Bank | 2.5% |
| RBL Bank | 2.5% |
| IndusInd Bank | 2.5% |
Top Cards with Lowest Charges
Now that you know how to withdraw money using a credit card without charges, the table below will take you through selective credit cards with very low cash withdrawal charges. This will help you choose the right card according to your financial standing:
| Credit Card | Cash Withdrawal Charges |
| YES Private Prime Credit Card | None |
| Axis Bank Reserve Credit Card | None |
| Axis Bank Burgundy Private Credit Card | None |
| Axis Bank Magnus Credit Card | None |
| ICICI Emeralde Credit Card | None |
| Kotak Fortune Gold Credit Card | Rs. 199 |
Credit card cash withdrawal charges allow you to meet urgent financial requirements. Unlike personal loans, you do not need to go through an application process or wait for your card issuer to sanction a loan to access the money. You only need to take the card to your nearest ATM and withdraw the required amount. Furthermore, you can easily connect with your respective bank for any queries regarding the credit card cash advance facility for your card.
Send Money from Credit Card to Bank Account
In addition to cash advances, you may want to send money from your credit card to your bank account. There are several ways to achieve this:
- PayPal or Venmo: If you want to send money from credit card to bank, you can link your credit card to platforms like PayPal or Venmo. From there, you can transfer money to your bank account. However, most of these services charge a fee when using a credit card.
- Direct Fund Transfer: Some credit card issuers allow fund transfer from credit card directly to your bank account. This can be a convenient way to move funds, but you’ll need to confirm whether your credit card provider charges fees for such transfers.
Send Money from Credit Card Without Fee
While many services charge fees for sending money from a credit card, some credit cards offer features that allow you to send money from credit card without fee. For instance, some credit cards offer no charge balance transfer credit cards that allow you to transfer balances or send funds to a bank without incurring any fees.
If you’re looking to transfer credit card balance no fee, consider using a credit card that offers balance transfer promotions. Many cards allow you to transfer a balance to another card with no fee for a promotional period, which can help reduce costs if you’re looking to move your debt or transfer money.
Send Money from Credit Card to Bank Account Free
Some credit card providers allow you to send money from credit card to bank account free of charge, depending on the service you use and the specific terms of your credit card. No-fee balance transfer credit cards, for example, let you move money from your credit card to your bank account without incurring fees, at least for a promotional period.
However, always read the fine print to make sure you understand all associated costs. While some cards may offer free transfers, others could charge fees after a certain period or once you exceed the transfer limit.
Learn more about finance in our Mastering Financial Knowledge for a Secure Future Blog
Conclusion
While withdrawing cash from your credit card or transferring money to your bank account can be convenient, it’s important to consider the costs involved. Cash advances, for instance, come with high fees and interest rates, so they should only be used in emergencies. If you’re looking for no fee options, consider cards that offer no charge balance transfer credit cards or those that allow you to transfer balances or funds to your bank account at no cost.
Remember, how to get cash on a credit card involves weighing the costs against the convenience. Always check with your credit card issuer about fees, interest rates, and available options to avoid surprises. By understanding these options, you can make more informed decisions about sending money from credit cards, whether it’s to a bank account or for another purpose.
