Can I withdraw cash from credit card?

Yes, but it comes with high cost and strict conditions.

This option exists for emergencies, not convenience.

What cash withdrawal from a credit card really means

Withdrawing cash from a credit card is called a cash advance.

Instead of paying a shop or website, actual cash is taken out using:

• An ATM
• A bank counter (in some cases)

This is not normal card usage.

It is instant borrowing.

What happens the moment cash is withdrawn

The rules change immediately.

Here’s what kicks in:

• Interest starts the same day
• No interest-free period
• Extra withdrawal fees apply

Shopping spends get time.

Cash withdrawals don’t.

That’s the big difference.

Charges involved in cash withdrawal

This is where it gets expensive.

Usually charged:

• Cash advance fee (2%–3% or a flat amount)
• High interest rate (often higher than shopping spends)
• GST on fees and interest

Even a short delay in repayment increases the total bill.

Why banks allow cash withdrawal at all

Because emergencies happen.

Situations like:

• Medical needs
• Travel issues
• No access to bank funds

Cash advance is a backup option.

Not a money management tool.

Used once in a real emergency, it helps.

Used often, it hurts.

Impact on credit score

Cash withdrawal can affect credit health.

Why:

• Credit utilisation increases
• Risky usage patterns are flagged
• Repayment pressure rises

Occasional use may not hurt much.

Repeated use does.

Better options before withdrawing cash

Quick tip. Before using a credit card at an ATM, consider:

• Using savings account or UPI
• Borrowing short-term from trusted sources
• Converting card purchases into EMI
• Using emergency savings

Most of these cost less over time.

When cash withdrawal might make sense

Very limited cases.

• Genuine emergency
• No other funds available
• Clear plan to repay quickly

Speed of repayment matters more than the amount withdrawn.

Things to check before withdrawing

Before attempting a cash withdrawal, confirm:

• Cash withdrawal limit on the card
• Interest rate for cash advance
• Fees per transaction

Knowing the cost upfront avoids regret later.

FAQ

Is cash withdrawal from credit card allowed?

Yes, if the card supports cash advance.

Is there any interest-free period?

No, interest starts immediately.

Does withdrawing cash affect credit score?

It can, especially if done often.

In short

Cash can be withdrawn from a credit card.

It is costly and risky.

Best kept for real emergencies only.

Still unsure if a cash advance is worth the cost right now?