How to get cash from credit card?

Cash can be withdrawn from a credit card through an ATM using the credit card PIN.

This feature is called a cash advance.

It allows cardholders to access a portion of the credit limit as cash when needed.

However, withdrawing cash from a credit card usually involves additional charges and interest.

Banks such as HDFC Bank, ICICI Bank and State Bank of India provide this facility on most credit cards.

Let’s understand how it works.

What Is Credit Card Cash Advance

A credit card cash advance allows withdrawing cash from an ATM using the credit card.

The amount withdrawn is treated as a loan from the credit card limit.

This means:

• The withdrawn amount reduces the available credit limit
• Interest may start immediately
• Additional fees may apply

Cash advances are generally meant for emergency situations.

Steps to Get Cash from Credit Card

Cash can be withdrawn using an ATM.

Typical steps include:

1. Insert the credit card into the ATM
2. Enter the credit card PIN
3. Select Cash Withdrawal
4. Enter the amount to withdraw
5. Confirm the transaction

The ATM dispenses cash, and the amount appears in the credit card account.

Example of Credit Card Cash Withdrawal

Consider a credit card with a limit of ₹1,00,000.

The bank may allow a cash withdrawal limit of around ₹20,000.

If ₹10,000 is withdrawn:

• Available credit limit becomes ₹90,000
• Interest begins on the withdrawn amount

The amount must be repaid through the credit card bill.

Charges for Cash Withdrawal from Credit Card

Cash withdrawals from credit cards usually involve several charges.

Common charges include:

• Cash advance fee
• Interest charges from the withdrawal date
• GST on applicable fees

Unlike regular purchases, there may be no interest-free period for cash withdrawals.

Things to Consider Before Withdrawing Cash

Before using a credit card for cash withdrawal, it helps to consider a few points.

Important factors include:

• High interest rates
• Additional withdrawal fees
• Immediate interest calculation

Because of these costs, cash withdrawal should be used carefully.

Alternatives to Credit Card Cash Withdrawal

Sometimes other options may be better.

Possible alternatives include:

• Personal loan
• Debit card withdrawal
• UPI transfer from bank account
• Borrowing from savings

These options may involve lower costs.

Tips for Responsible Credit Card Use

A few habits can help manage credit cards effectively.

Helpful practices include:

• Avoid frequent cash withdrawals
• Pay credit card bills on time
• Track spending regularly
• Keep credit utilization under control

Responsible usage helps maintain financial stability.

FAQ

Can cash be withdrawn from any credit card?

Most credit cards allow cash withdrawals, but the limit may vary.

Is interest charged on credit card cash withdrawal?

Yes, interest usually starts immediately after the withdrawal.

Does cash withdrawal affect the credit limit?

Yes, the withdrawn amount reduces the available credit limit.