Can We Withdraw Money From Credit Card?

Hi Ananya. I came across your query where you were asking can we withdraw money from credit card. Yes, you can use a credit card to withdraw money. But, there are certain disadvantages of using a credit card to withdraw money. I mean there are some upsides as well, but they are outweighed by the negatives. I will talk about this in depth below.

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Can we Withdraw Cash from Credit Card?

The credit card comes with a set of pros and cons for the withdrawal of funds. 

Pros

1. The funds are received instantly without the need for any documentation. 

2. You don’t have to wait for any approval from the bank.

3. You can increase reward points given by the bank to credit card holders.

Cons

1. There’s a set charge called the cash advance fee, ranging from 2.5 percent to 3 percent of the transaction amount. 

2. There are also finance charges, which increase the overall loss you incur due to credit card cash withdrawal.

3. The bank also adds interest on a monthly percentage rate. 

4. There’s a set limit for ATM withdrawals using a credit card. Beyond this limit, you are charged an ATM maintenance fee. 

5. High charges associated with cash withdrawal via credit cards will increase your expenses. Upon failure to pay off the minimum due amount, your credit score can be impacted negatively.

So, I hope you now know can we withdrawal cash from credit card. But, in my view, you should avoid using your credit card for cash withdrawals. 

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Some related information:

I thought both credit cards and debit cards are the same and believe we use them for cash withdrawal in ATMs but recently I learned that there are some charges associated with debit cards. I got a bit puzzled and had to ask him

can we withdraw money from credit card? If yes, why give the charge? I am taking my money from the bank only. He said the two cards are different and I use a debit card in an ATM for withdrawing money which has a minimum charge but not as much as that of debit card. So let me tell you what does credit card mean first and then the other details.

A credit card is a payment card that is issued by users so that they can pay for goods and services based on the cardholder’s accrued debt. It is a facility that is provided by the banks allowing the user to borrow funds within a pre-approved credit limit. 

Can i withdraw cash from credit card?

Like a debit card only, one can use the credit card to withdraw money.  But be sure that you have to pay a higher interest rate on any cash you withdraw.  The fee charged is called as Credit Card Cash Advance Fee and it appears in the next billing statement along with the entire amount withdrawn and interest levied on the amount withdrawn. I hope this answers your query of can we take cash from credit card or not.

Credit cards are safer than debit cards as it offers a better consumer protection against fraud compared to that of a debit card linked to a bank account.

I hope now you know can we withdraw money from credit card or not.

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