How to Start Investing in 2025: Complete Guide for Beginners
Want to find out how to withdraw money from your credit card? Then you've come to the right place.
When you need money for an emergency or to pay bills, you may wonder if you can withdraw money from your credit card.
Many credit card companies allow you to get funds from your card via a cash advance. While this can be convenient in an emergency, cash advances also have some drawbacks to consider.
Therefore, before using your credit card to withdraw cash, it is important to weigh the pros and cons.
See below how to withdraw money from your credit card.
Also known as emergency withdrawal, credit card withdrawals can be made as soon as you are approved by a bank that provides you with a credit card.
This transaction can be called a loan, since the bank is “lending” it to you. The withdrawal limit is based on the limit you have on your card.
Withdrawing money with your credit card is very simple. Just go to an ATM and choose the option to withdraw by credit card to have access to the money released. The amount will then be made available in your checking account.
It is worth remembering that the amount withdrawn must be available within your credit card limit.
When talking about how to withdraw money from credit card, in technical terms, withdrawing money from credit card is called 'Credit Card Advance'.
Using this facility, users can withdraw cash from an ATM using their credit card. However, there are some points related to withdrawing cash from credit card that you should note.
The main function of a credit card is to perform card transactions, cash withdrawal is just an additional feature of the credit card offered by banks.
Users can withdraw money from their credit card only up to a permitted limit and no more.
The maximum cash withdrawal limit from a credit card may vary from bank to bank. Users will have to pay additional fees along with interest on the amount withdrawn using a credit card.
Not all banks/credit card issuers offer the facility of cash withdrawal by credit card.
Credit cards are typically used to make purchases. For example, you use your card at the checkout in stores or enter your card number and expiration date to make purchases online.
As you make purchases, your available credit is reduced by that amount until you pay your credit card bill.
Credit card cash advances work differently. If your card allows it (and not all do), you may have a credit limit for purchases and another limit for cash advances, which is usually lower than your purchase limit.
When you take out a cash advance, you are borrowing money against that credit limit.
Additionally, cash advances start accruing interest immediately, unlike purchases, where you typically have a 20- to 30-day grace period to pay your bill before interest starts accruing.
There are several ways to receive a cash advance, including:
After you find out how to withdraw money from your credit card, know that withdrawing money from your credit card may seem like a good option if you are in a financial situation difficult.
For example, if your car breaks down and you need to pay a tow company that doesn't accept credit cards, this may be your only option.
But if the situation is not urgent, you may want to look into other options for getting cash as a credit card advance can be expensive.
Withdrawal of money from credit card attracts financial charges. These fees vary between 2.5% and 3% of the total amount withdrawn, depending on each bank.
The actual interest rate on a cash advance varies from bank to bank and from one type of card to another.
It is important to note that details related to cash withdrawal from credit card are shared with the credit card holder at the time of issuance of the credit card.
Therefore, it is highly recommended to go through all the terms and conditions before taking out a credit card to avoid any unwanted surprises later.
Now that you know how to get cash from your credit card, you should know that credit card cash advances have some advantages, but they can be expensive compared to other ways of borrowing money.
If you need funds but it's not an emergency, take the time to research your other options before committing to a credit card cash advance.
And if you do end up withdrawing money from the card, try to pay off the balance as quickly as possible so minimize interest.
