Not only can you pay for goods and services using your credit card, but also withdraw cash from ATMs, a facility which is also known as credit card cash advance.
Almost every major financial institution offers the facility of a cash advance, which can prove essential in many situations. These advances are offered against a credit card cash advance fee that the lender charges against the transaction.
Charges for withdrawing cash using credit card
The fees and charges applicable for cash withdrawal usually vary between different financial institutions. The following credit card cash advance fee and charges are standard with all companies –
- A monthly interest of 3.99% or above. This rate is usually the same as the finance charge or interest rate on the credit card.
- A one-time, flat fee of 2.5% is charged as a processing charge for credit card cash withdrawal. There can also be a minimum chargeable amount.
It is best to visit the website of your lender or contact them via their credit card customer care to get a detailed insight into the fees and charges applicable. It will also allow you to use your credit card wisely as you will be able to determine when and how much funds you should transact through cash withdrawal at a particular time.
Few factors you should remember while making credit card cash withdrawal
- Applicable limit –
The amount of cash that you can withdraw via your credit card depends on the limit allocated on that particular credit account. Usually, lenders allow as much as 60% of that limit to withdraw as cash from ATMs.
Moreover, this limit may not be the same for different variants of credit cards provided by a financial institution. More feature-packed cards may offer a higher limit than other options available in the market.
The sum can also depend on your unused credit limit. A lower available credit limit will restrict the amount that can be withdrawn as hard cash.
- Late payment charges –
Some financial institutions may levy late payment charges if you fail to repay the sum within a predetermined period. You can contact credit card customer care for more details on the same.
One of the advantages of credit card cash advance does not affect your credit score, which makes it suitable for meeting emergency financial requirements. You can collect the necessary financing without having to go through the lengthy application process required for a loan. You are smarter with a credit card in your pocket owing to this and many other reasons.
Credit cards with zero cash advance fee charges
There are a few credit cards that provide the facility of ATM cash withdrawal without charging any interest for a promotional period.
Credit cards like the SuperCard are one such product. You can enjoy up to 50 days of interest-free period on ATM cash withdrawals. Furthermore, you will also be able to avail an emergency personal loan that attracts zero interest for a period of up to 90 days.
You can also benefit from the pre-approved offer provided by this NBFC as it helps simplify the application process and save time. Customers can enjoy these offers on credit cards, personal loan, business loan, and several other financial products. You can check your pre-approved offer by sharing only some essential details online.
The best way to know your credit card cash advance fee and charges is to go through the clauses provided by your lender. Contacting a representative will also help you father the necessary information.