Key Points:
- Cash Advance is a service provided by credit companies that allows users to withdraw a sum of cash from their credit card.
- How to get cash out of a credit card?
- Via ATM
- Via Bank
- Through Checks
- Balance Transfer
- In-Store
- Customers have to pay service fees every time they take cash advances.
- The lenders charge a high APR over the amount withdrawn.
Can you withdraw money from a credit card? — What? Is it even possible?
There’s a ton of information about minimum payment on credit cards, and how to pay bills and purchase items with it. However, you do not see much about the fact that you can even withdraw money from credit cards.
Hearing it for the first time? Well, you can use your credit card and take cash advances to make cash payments. So, instead of swiping the card, should you just withdraw cash? Well, you should not, as it incurs fees and other charges. This must be your last resort when you are in dire need of paying with cash.
Let’s learn how to get cash from credit cards and all the nitty-gritty.
Yes, it is possible to get cash from your credit cards. If your bank account does not have sufficient funds to cover your expenses or pay the bills, you can use your credit card. These are called cash advances, or you can say it’s a kind of short-term loan from your credit lender.
The amount withdrawn will be merged into your credit card balance and will incur APR and fees depending on your lender. Many companies offer a grace period to pay off the cash advance amount with the fees, in that case, one can prevent high interest rates.
What is Cash Advance?
An act of withdrawing cash against the credit card limit. This feature must be used during emergencies due to high-interest rates and fees.
Now that you’ve understood this, let’s go ahead and discuss the methods to get cash from credit cards.
Let’s learn the trick to withdraw money from credit cards. However, you must be cautious because the other side has crippling interest rates and high fees.
Just like any other debit card, one can use credit cards in ATMs and withdraw money. For that, the user must have a preset PIN. If that’s not available, you can generate it by calling the issuer.
All you need to do is insert the card, select the credit card option, and enter your PIN and the amount you wish to withdraw. The one-time fees associated with the cash advance will be reflected on the screen.
Another way to take cash from a credit card is by visiting your bank. You can fill out the withdrawal form and submit it at the counter with your credit card to take cash. Note that every institution has its procedure, so it’s better to talk to the representatives.
Credit lenders also provide a balance transfer feature in which you can move the balance of one card to another.
Let’s say, you have two credit cards, one has a balance of $2000 and another with $1500. What you can do is transfer the balance of one to another by contacting the issuer and withdrawing the desired amount.
By doing this, you can escape the high interest rate and get the benefits of both banks combined.
Many credit lenders issue cash advance checks to cardholders. These checks are used like the personal account checks. Fill it out with the details and submit it to the withdrawal counter of your bank.
Please note that these checks involve security risks, so you must keep them safe, barring access to anyone.
Cardholders can use their card and overpay at any store and ask the cashier to hand over the cash for the extra amount. You can generally get this facility with a Citi Custom credit card, Capital One Savor One credit card, and other cash-back cards.
It is a smooth process, however, the store carrying the process might ask for the processing fee. So make sure to have a check before proceeding.
These are a few ways to get cash advances from credit cards. Moving ahead, let’s discuss the positives and negatives and things to keep in mind in the next sections.
Also Read: How to Avoid Interest on Credit Cards? —10 Best Ways to Avoid or Reduce Interest
If you’re considering taking cash advances from your credit card lender, you must know what you’re getting into. Here we have written pros and cons that will help you make a rational decision.
Cashing out your credit card might not be a wise decision due to its high interest rates and the risk of hampering the FICO score. However, you can definitely consider it as a means during a financial emergency. But make sure to repay the loan amount on time.
Moving ahead, let’s discuss the points that you need to keep in mind.
There are certain things to keep in mind when taking cash from credit cards. Let’s discuss them here:
These are the points that you must keep in mind while withdrawing cash from a credit card.
So this was all about how to get cash from credit cards and the crucial points regarding it. We hope this blog will be helpful to you. Share it with your friends to spread the knowledge.
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Ans: Visit any nearby ATM, insert your credit card, and withdraw money using the cash advance feature.
Ans: It is possible to withdraw cash via credit cards, but you must know the type of card you are using.
Ans: You can get a cash advance by going to your bank or an ATM and withdrawing cash against your credit balance.
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