How to Withdraw Cash Using a Credit Card?

A credit card can be used for online purchases and cash withdrawals from ATMs. Swiping it to withdraw cash is considered a cash advance. This blog helps you understand how to withdraw cash through your card and its implications. Read on!

Steps to Withdraw Cash Using a Credit Card

Follow the below-mentioned steps to withdraw cash using a credit card:

• Step 1: Go to your nearest ATM and insert your card into the machine.
• Step 2: Choose the option of “cash withdrawal” and enter the desired amount.
• Step 3: Enter your credit card PIN and confirm the transaction.
• Step 4: Take your card and collect the cash.

Dos and Don’ts for Credit Card Cash Withdrawal

The following are the dos and don’ts for credit card cash withdrawals:

Dos	Don’ts
You must check the allotted cash withdrawal limit.	You should not withdraw funds more than you need.
Withdraw cash from the same bank’s ATM to save transaction fee charges.	Do not make delays in repayment to avoid the accumulation of interest.
You must rely on this feature only in emergencies.	Avoid credit card cash withdrawal if you already have loan balances pending.
To avoid additional charges, assess the card’s terms and interest rates thoroughly.	Consider getting a Personal Loan instead of using the cash advance feature.
Repay the outstanding balances as soon as possible.	Never max out your credit card limit.

 

Also Read: Do's and Don'ts of Using a Credit Card

How Does Credit Card Cash Withdrawals Impact Your Credit Score?

Using the cash advance facility does not directly impact your credit score, but it can indirectly hurt your creditworthiness. How? Let's find out:

1. Short-term Impact

Taking out cash with your credit card increases the payments you need to make every month. It incurs interest at a high rate and other fees that can overburden your financial stress. However, if you fail to pay your dues, it will impact on your credit score.

2. Increased Credit Utilisation

Upon availing of the option of cash advance, there are chances that your credit utilisation ratio may increase. This implies that the amount of credit balance you use against the allotted credit limit increases, which may potentially affect your credit score.

3. Potential for Late Payments

Frequent cash withdrawals with credit cards can lead to over-dependence and can eventually result in the accumulation of interest. Failure to pay the balances on time will demonstrate your poor ability to manage credit.

Availing of a Personal Loan from Poonawalla Fincorp can enable you to access favourable loan terms and competitive interest rates.

To Conclude

You can withdraw cash using a credit card from a nearby ATM. While cash withdrawals offer convenience, it is essential to be mindful of the associated charges and potential impacts on credit scores. By following the recommended dos and don'ts and exploring alternative funding options like a Personal Loan, you can navigate financial challenges with confidence and maintain positive credit health.

Frequently Asked Questions

1. What will happen if I don’t repay the credit card cash withdrawal?

Non-repayment of your credit bills will result in the accumulation of interest rates, increasing your cost of borrowing. This can further harm your credit score.

2. Is there a way I can transfer money from my credit card to my bank account?

Yes, by accessing the feature of balance transfer, you can transfer money from a credit card to a bank account. However, you must consider the possible implications of this method and explore alternative financing options to make informed decisions.

3. What is the ATM maintenance fee on credit card cash withdrawals?

Every bank allows you 4-5 ATM transactions every month whether you use debit cards or credit cards. After that, you will have to pay a small fee called the ATM maintenance fee.

4. How Can I Apply for a Poonawalla Fincorp IndusInd Bank eLITE RuPay Credit Card?

You can apply for Poonawalla Fincorp IndusInd Bank eLITE RuPay Credit Card as mentioned below:

• By visiting the Poonawalla Fincorp IndusInd Bank eLITE RuPay Credit Card page and clicking on ‘Apply Now’.

           Or

• By visiting the IndusInd Bank website.

5. What are the benefits of a Poonawalla Fincorp eLITE Credit Card?

The following are the benefits of a Poonawalla Fincorp eLITE Credit Card:

• No Joining Fee: Poonawalla Fincorp offers a lifetime free credit card. This means you do not have to pay any joining or annual fee to get it.
• Effortless Transactions: Experience smooth transactions by linking your credit card with third party UPI apps.
• Rewards: Earn rewards for every Rs.100 spent.
• Movie Offer: Pay for movie tickets with our credit card on BookMyShow and get a free movie ticket.

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply