How to Withdraw Cash from Credit Card?

Using a credit card to withdraw cash can be a quick solution when you're in urgent need of funds. This process, called a credit card cash advance, allows you to withdraw cash directly from your credit card at an ATM or bank. However, it’s important to be aware of the potential costs and implications associated with cash advances.

What is a Credit Card Cash Advance?

A credit card cash advance is, in effect, a loan against credit. While you may use the credit card for buying purposes, any cash taken out is considered a cash withdrawal, and carries fees and interest rates specific to cash advances. The cash advances are borrowed from the credit card issuer; the borrower's responsibility is to pay this amount with an added fee later.

Cash advances are usually the option to go to in cases of emergency when it becomes very urgent to withdraw cash using a credit card, and there is not an available source for other financing. The channel is an ATM, a bank counter, or a credit card-to-bank transfer (depending on the card issuer).

Steps to Withdraw Cash from an ATM Using a Credit Card

Withdrawing cash from your credit card at an ATM is quite straightforward. Here’s a step-by-step guide on how to perform this credit card withdrawal process:

1. Find a Suitable ATM
   To withdraw cash using your credit card, first, locate an ATM that accepts credit cards. Ideally, use an ATM that belongs to your credit card provider’s network to minimize fees. You can withdraw money from other ATMs, but ATM withdrawal with credit card at non-network ATMs typically incurs higher charges.
2. Input Your Credit Card
   Insert your credit card into the ATM as you would with a debit card. If the ATM prompts you to enter a PIN, make sure it is the right PIN assigned to this credit card.
3. Select the Cash Withdrawal Option
   After entering your PIN and logging on, select cash withdrawal from the ATM screen. When prompted about the type of account, remember to select "credit" since you will be withdrawing cash from a credit card and NOT from the bank account.
4. Enter the Amount to Withdraw
   Enter the amount you wish to withdraw, taking into account that there is a limit to cash withdrawal on your credit card. A cash limit is usually set by the credit card issuer and is lesser than the total amount on the card.
5. Validate the Withdrawal
   Carry out a review of the details of the withdrawal and endorse it for processing. The cash is released from the ATM, and you have to ensure you collect the cash, your card, and the receipt of the transactions.

How to Get Cash from Credit Card Without Hassle?

Getting cash from your credit card without facing unnecessary hurdles requires preparation and understanding of how the process works. Below are some tips to ensure a smooth experience when you need emergency cash from a credit card:

1. Understand Your Credit Card Cash Limit
   Before attempting a credit card cash advance, make sure you know your cash advance limit. This limit is often lower than your total credit limit and determines how much cash you can withdraw. It’s important to know your available balance to avoid running into issues.
2. Choose a Network ATM
   To avoid high fees and charges, use an ATM that belongs to your credit card’s network. Most credit card providers have partnerships with specific ATM networks where you can withdraw cash without incurring extra transaction fees or higher cash advance charges.
3. Monitor Fees and Interest Rates
   Be aware of the cash advance charges and interest on cash withdrawal that come with using a credit card for cash withdrawals. Credit cards typically charge a fee of around 2% to 5% of the withdrawal amount, and interest starts accruing immediately. Make sure to keep track of these to minimize the costs.
4. Pay Off the Amount Quickly
   Since interest on cash advance without fees starts accruing immediately, it’s crucial to repay the withdrawn amount as quickly as possible. Make sure you pay off the balance in full within the shortest possible time to avoid accumulating high-interest charges.

How to Take Cash from Credit Card Without Extra Charges?

While using your credit card for cash withdrawals may seem convenient, it’s important to avoid unnecessary credit card transaction fees and high-interest charges. Here are some strategies to withdraw cash from your credit card without incurring extra costs:

1. Hunt for No-Fee Cash Advance Promotions
   Cash advance promotions from various credit card providers are available on a select basis these days without incurring fees for a very limited time. So before you go for that emergency cash from credit card check to see if your credit card issuer has a promotion for cash advance fee waiver for some limited time. That way, you can bypass all those extra charges in cases of emergencies.
2. Transfer Money from Credit Card to Bank Account
   If you want to take cash out from a credit card, yet avoid ATM withdrawal fees, consider direct transferring from the credit card to the bank account. Many credit cards will allow such a credit card to bank transfer option, which costs less than cash withdrawals done via ATM. While some credit cards would also levy little or sometimes even no fees for such transfers.
3. Repay Quickly to Avoid Interest
   To escape the cash withdrawal interest, make the repayment with utmost urgency. Preferably make repayment of the full amount at once to prevent interest from piling up. This decreases your final expense of a cash advance.
4. Keep Below Credit Limits
   Since cash advances are usually granted lower limits compared to your general credit limit always draw within cash advance limits unaffected so as not to incur extra charges. Sticking to your cash limit also prevents you from getting on the wrong side of the credit card company.

Conclusion

Though withdrawing cash using a credit card could serve you during the time of an emergency, it is important to note that such withdrawal has costs such as cash advance or transaction fees, interest on the cash withdrawn, and credit card cash limit. By following the steps mentioned above and knowing how to take cash from any credit card without incurring extra charges, you can have access to funds when necessary yet not have to spend unnecessarily.

A credit card cash advance should be the last resort when all other options have been considered already, such as credit card to bank electronic transfers or a low-interest personal loan. If ultimate withdrawal of cash is the chosen option, however, try to take note of the repayment period so as to avoid high-interest rates and fees.