How To Withdraw Money From Credit Card – Step-by-step Process

Cash advance from a credit card enables cardholders to obtain cash when there's an emergency or electronic payment isn't feasible. Yet, one should be aware of the procedure step by step and also learn about the charges and interest to prevent any surprises.

What is Credit Card Cash Withdrawal?

Cash withdrawal using the credit card involves utilising your credit card to obtain physical money, usually from an ATM. Unlike the withdrawal using a debit card, this uses your credit limit and is considered a loan with instant interest fees and other charges. Cash advances are easy but sometimes expensive, so they must be used wisely.

Step-by-Step Procedure to Withdraw Money from a Credit Card

1. Verify Your Cash Withdrawal Limit: First of all, verify your card's cash advance limit, which is normally a percentage of your total credit limit. The information is in your card's terms or by phoning your issuer.

2. Find an ATM: Utilise an ATM that contains your credit card network (Visa, MasterCard, RuPay, etc.). Some bank branches also provide cash withdrawals against credit cards.

3. Insert Your Credit Card: Insert your credit card into the ATM card slot.

4. Enter Your PIN: Enter your credit card PIN. If you haven't already done so, call your bank to obtain or have reset for cash advances.

5. Select Cash Withdrawal or Cash Advance: On the ATM display, select the option titled "Cash Advance," "Credit Card Withdrawal," or something similar.

6. Enter Amount: Enter the sum you want to withdraw within your cash limit and ATM withdrawal limits.

7. Confirm Transaction: Double-check the withdrawal amount and fees if shown, and accept the transaction.

8. Collect Cash and Receipt: Collect your cash, card, and receipt that will detail the amount withdrawn and any charges incurred.

Important Points to Remember

• Interest and Charges: Withdrawals made in cash attract a "cash advance fee" of approximately 2.5% to 3% of the withdrawal amount, plus an minimum fixed charge (for subsequent amounts) say ₹300. Interest begins immediately on withdrawal date, unlike purchases on which interest is charged from the end date of the interest-free period.
• No Interest-Free Period: In contrast with other card purchases, there is no interest-free period available for cash advances; interest is charged from withdrawal date until payment in full.
• Transaction Limits: ATMs often have daily withdrawal limits, so withdrawing large amounts may require multiple transactions.
• Security: Always safeguard your credit card PIN and monitor your statement for unauthorised transactions.

Withdrawing cash using your credit card is a convenient short-term solution for immediate funds but can be costly if not paid off immediately. It's wise to take out only what is needed and pay the balance as soon as possible to avoid finance charges.

This easy-to-use guide ensures that you know how to obtain cash from your credit card easily and securely while knowing the associated costs.