Advantages of credit card cash withdrawal primarily include availing liquid cash on credit. However, financial institutions and experts alike discourage the habit of withdrawing any cash through a credit card. A credit card is essentially an instrument to execute non-cash transactions on credit. Additionally, cash transactions are treated separately compared to non-cash transactions by credit card issuers.

Can we withdraw money using a credit card?

You can withdraw cash using a credit card through ATMs. Such transactions are limited to the extent of a predetermined cash limit set by the card issuer. This limit is a percentage of the total credit limit you are allowed on your card.

Benefit of credit card cash withdrawal

• Conveniently meet any cash expense

In the event, you do not have sufficient monetary resources at your possession, you can use the cash withdrawal facility of your credit card for instant liquid cash.

• Instant loan

You can avail lump sum funds against the cash limit of the credit card for a substantial cash expense instantly.

Drawbacks of cash withdrawal using a credit card

• Interest rate

Interest rates charged on cash transactions are considerably higher than non-cash transactions. Additionally, in case of most cards, interest is charged from the day following your cash withdrawal. However, premium cards such as the Bajaj Finserv RBL SuperCard offer a grace period for you to repay the amount.

• Processing fee

Credit card cash withdrawals come with a processing fee, which is either charged at a flat rate or varies according to the amount.

You should duly consider your financial position and repayment capability before availing any cash through a credit card. Defaulting on the payment will not only impose a financial burden on you but also affect your credit score.