Credit cards may allow cash withdrawals from eligible ATMs, but cash advances can be considerably more expensive than normal purchases. Always check your card’s current terms before using this feature.
What Is a Cash Withdrawal?
It is a transaction where you use your credit card to obtain cash rather than purchasing goods or services.
Common Costs
Depending on the card, costs may include a cash-advance fee, finance charges and applicable taxes. The interest treatment can also differ from normal retail purchases.
Cash Withdrawal Limit
Your cash withdrawal limit may be lower than your overall credit limit. The exact amount depends on the issuer and card.
Why It Can Be Expensive
Cash withdrawals often carry separate fees and may not receive the same interest-free treatment as eligible purchases. This can make the effective cost high.
Better Alternatives
If you need emergency cash, compare the cost of available options such as an affordable personal loan, an existing savings buffer or other legitimate financing before using a credit-card cash advance.
Safety Tips
- Check the fee before withdrawing.
- Withdraw only what you need.
- Pay it back as quickly as practical.
- Never share your PIN or OTP.
FAQ
Can I withdraw cash from any ATM?
Only where your card and issuer support cash withdrawals and subject to applicable limits.
Is cash withdrawal the same as a normal card purchase?
No. It can have different fees and interest treatment.
Disclaimer: Charges and interest treatment vary by issuer and card. Check the current card agreement before withdrawing cash.