If you need money suddenly anywhere, there is no other option except ATM. Some people also prefer to withdraw money from credit cards quickly. But is it possible to get money from a credit card anytime? Can I withdraw money from my credit card?
Your answer is here. Here you know all the details, advantages, and disadvantages of withdrawing money from a credit card. Let’s dive deep into the details.
What is withdrawing money from the credit card?
To get cash from a credit card means borrowing money in advance. It is not fundamental but the additional features from the bank. The primary use of credit cards is to make purchases at the checkout in-store and online by typing your card number and expiration date.
When you purchase anything with a credit card, your credit is declined to that particular amount until you back it. But all credit cards don’t allow you to do that. You need to follow some precautions before withdrawing money.
How can you take out money from a credit card?
A credit card cash advance provides you money as a loan, and you need to pay that loan within permissible limits. You need to put your credit card number while making money through the ATM booth, or you can write a convenient check to withdraw money. Then, you need to repay that money with interest and other charges.
Can you use a credit card to withdraw money?
It may be too expensive:
When you borrow or withdraw money from the credit card, they will charge an advance fee or interest rate until you pay back the loan. This charge will start from the day when you withdraw money.
It could be the percentage of the amount you withdraw. Besides, the charge for a cash advance may be fixed monthly based, and the bank can charge you 3% to 5% of the total amount of each cash advance. The more you delay paying the interest, the more interest you have to pay for that.
Moreover, bank or ATM fees may depend on your chosen method. The interest rate can be higher and vary from card to card.
What are the advantages of withdrawing money from a credit card?
- When you badly need money, you can grab this opportunity.
- This cash advance facility does not require any other approvals.
- You don’t need any bank requirements or documents.
Disadvantages of withdrawing cash:
- Users can withdraw money up to a permissible limit which can vary from bank to bank
- Users need to pay additional charges along with interest with the withdrawn amount
- You have to pay a cash advance fee for every individual transaction.
- The cost is higher than regular transaction
Overall, although there are some limitations in withdrawing cash using a credit card, if you have strong financial support, you can apply for the enhancement of the limit in the future on your credit card. Hope, now you know the answer can you withdraw money from the credit card?