Withdrawing cash through credit cards is possible as several financers include this feature in their financial tool. However, not every credit card comes with this feature. Individuals with access to such a facility must know when to withdraw funds so that they can maximize the benefits and not end up paying more than the utility derived via such withdrawal. Some ideal scenarios where the withdrawal facility can be availed include medical emergencies, educational fees, meeting necessary expenses when short of funds, etc.

The pointers mentioned below discuss pointers you must consider when withdrawing funds using a credit card.

• Financial institutions levy a cash advance fee on the withdrawn amount at a rate of 2.5% to 3%. Therefore, making multiple withdrawals is not suggested. Also, with cards like Bajaj Finserv RBL Bank SuperCard, customers can withdraw interest-free cash for up to 50 days.
  
• Applicable credit card cash withdrawal limit is the threshold for such withdrawals. The ceiling is usually set at 20% to 40% of the unutilized credit limit. Thus, if your card has a low credit limit, the fund may not be sufficient and beneficial given the charges applicable to such withdrawal.
  
• Credit cards include other charges as well, which can increase the cost of borrowing. Financial institutions levy interest on the borrowed amount if a customer doesn’t pay the entire bill in time. It is thus ideal to consider these charges and withdraw only up to a limit that is easy to repay in due course.
  
• It is also wise to withdraw cash at the beginning of a billing cycle so that one enjoys an interest-free period of up to 50 days before the due date for bill payment. Making withdrawals towards the end can make repayment stressful due to the lack of sufficient time.

Above pointers help individuals decide when to opt for a credit card withdrawal and otherwise. Customers can thus consider them and withdraw funds from the available limit to meet their funding needs efficiently.