Credit cards have evolved into one of the most significant financial products. Credit cards have become more of a need than a luxury, thanks to growing features and rewards.
Credit cards, like debit cards, enable you to withdraw cash from ATMs as well as make payments at different online and offline merchant businesses. However, credit card cash withdrawal is not that straightforward. There are several more factors to consider before proceeding with a credit card cash withdrawal. This blog will assist you in learning all you need to know.
What Exactly is a Credit Card Cash Withdrawal?
Credit card cash withdrawal is technically known as a ‘Credit Card Advance.’ Users can use this service to withdraw cash from an ATM using their credit card. However, there are a few things to keep in mind with credit card cash withdrawals:
- The primary function of a credit card is to perform card transactions; cash withdrawal is an optional feature of credit cards provided by banks.
- Users can withdraw cash from their credit cards only up to the allowable limit.
- The maximum credit card cash withdrawal limit varies per bank.
- When using a credit card, users must pay additional fees as well as interest on the withdrawn amount.
How Do I Withdraw Money Without Even Being at The Bank?
It is really simple to withdraw funds from a credit card online. Simply log into your account, pick the option to withdraw money, and then enter the amount you wish to withdraw. You will then be prompted to provide your bank information, after which the funds will be deposited into your account within a few minutes. This service has no credit card charges or fees and is available to all cards.
Online Bank Account to Credit Card Transfer
You may transfer money from your credit card to your bank account using a variety of methods. To transfer money from your credit card to your bank account, you often need to download a mobile banking app.
The Online Procedures Are Described Below:
- Sign up for/log in to the mobile app.
- Transfer money to your wallet with your credit card.
- Next, select “Passbook.”
- Choose the ‘Send money to bank’ option.
- Select “Transfer”
- Enter the information for the bank account that you want to use to send money now.
- Verify your information, then click “Send.”
- Your bank account will get the money right away.
Types of Bills That Can be Paid With a Credit Card Withdrawal Online
You can use your credit card to pay for a variety of bills and payments, including:
- Bills for utilities
- Cable television bills
- Internet service fees
- Loans for students
- Payments on a mortgage
- Payments on a car loan
Does Using a Credit Card to Withdraw Money Online Affect Your Credit Score?
Your credit score may be impacted by cash withdrawals made with your credit card. Although the impact is not as great as other kinds of transactions, such as making a late payment or exceeding your credit limit, it can nevertheless result in a decrease in your credit score.
Because it is seen as a cash advance, withdrawing money using your credit card may have an impact on your credit score. Cash advances may be expensive since they sometimes come with hefty interest rates and fees. They can also let lenders know that you are struggling financially and therefore be more prone to fail on your obligations.
It is preferable to make minimum withdrawals from your credit card whenever possible. This can lessen the negative influence on your credit score and assist you in avoiding exorbitant costs. Additionally, to minimize the amount of interest you will pay, make sure to pay back any cash advances as quickly as you can.
Credit Card Charges and Withdrawal Fees
- A cash advance fee will be imposed if you withdraw cash from an ATM. A fee of 2.5% or Rs. 500 (whichever is greater) will be levied for domestic cash withdrawals, and a cost of 2.5% or Rs. 500 (whichever is greater) will be charged for overseas money withdrawals.
- You will additionally be charged a service charge (monthly & annual charges of 3.5% p.m. & 42% per annum, respectively) on these withdrawals, beginning with the day you took the cash from the ATM and ending with the date of settlement or return of the entire amount.
Summing Up!
Getting withdrawals from a credit card is a more straightforward and accessible approach. You simply need to enter your credit card PIN code to withdraw cash from your credit card. Cash advances, on the other hand, come with a slew of fees and interest rates.
Paying bills, shopping for friends, and earning cash-back incentives are all alternatives to cash advances that can help you avoid the fees and interest rates associated with them.
Read also: RBL Credit Card Apply Does not Have to Be Hard. Read These 6 Tips