How to Get Money from Credit Card

Introduction

Credit cards are used mainly for purposes such as shopping, bill payments, and online purchases. However, many people in India also look for ways to convert their credit limit into cash during emergencies. Medical expenses, urgent travel, family needs, or short-term cash shortages can push people to check the option of how to get cash from a credit card.

While credit cards do allow access to cash, it is important to understand that there is a cost involved in it. Interest rates are usually higher, and extra fees may apply. If you are not careful, withdrawing cash from a credit card can end up in long-term debt. Here’s a roadmap to delve deep into how you can get cash from a credit card in India. Keep reading to have a clear idea about the different methods available, their charges, risks, and smarter alternatives. All that you need to know made simple helping you in making an informed decision.

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More About Credit Cards and Cash Access

A credit card gives you a pre-approved credit limit from the bank. This limit can be used for:

• Purchases
• Online payments
• Bill payments
• Cash withdrawals (limited)

When withdrawing cash from a credit card, it is known as a cash advance. Unlike normal purchases, cash advances usually start attracting interest right away. The important part is that this happens without any interest-free period. Before learning how to get cash from a credit card, it is important to know that:

• Cash withdrawal limits are lower than purchase limits
• Interest rates are high
• Extra transaction fees apply

Is It Prudent to Take Cash from a Credit Card?

Keep in mind that taking cash from a credit card should be your last option, not first. It is a fact that a credit card can be useful in emergencies. That said, it is expensive.

Pros:

• Fast access to cash
• No paperwork
• Useful during emergencies

Cons:

• High interest rates
• Cash advance fees
• No interest-free period
• Can hurt your credit score if not repaid on time

Understanding these pros and cons is crucial to realize how to get cash from a credit card is suitable for your specific situation.

Common Ways to Get Money from a Credit Card in India

In India, there are multiple methods to convert credit card limits into cash. Some are official and provided by banks, while others involve indirect methods. Here are the most common ways:

• ATM cash withdrawal
• Credit card cash advance
• Wallet transfer
• Balance transfer to bank account
• EMI-based cash withdrawal
• Merchant payment methods

Let’s look at each method in detail.

Cash Withdrawal from ATM Using Credit Card

The most direct way to get cash is by using your credit card at an ATM.

How it works:

1. Insert your credit card into the ATM
2. Enter your PIN
3. Select “Cash Withdrawal”
4. Enter the amount

Important points:

• Daily withdrawal limit is usually 20% to 40% of your credit limit
• Interest starts immediately
• ATM withdrawal fee is charged

This is one of the simplest ways to understand how to get cash from a credit card, but also one of the most expensive options.

Credit Card Cash Advance Explained

A cash advance is the amount withdrawn as cash from your credit card, either through ATM or bank counters.

Features of cash advance:

• High interest rate (usually 30% to 45% annually)
• Additional cash advance fee (2% to 3% of amount)
• No interest-free period

For example, if you withdraw ₹10,000, you may pay:

• ₹200 to ₹300 as fee
• Daily interest until repayment

Cash advance should be used only for short-term emergencies.

Using Credit Card for Wallet Transfer

Some digital wallets allow users to add money using a credit card and then transfer it to a bank account.

How it works:

1. Add money to a wallet using credit card
2. Transfer wallet balance to bank account

Things to remember:

• Not all wallets allow credit card loading
• Extra convenience fee may apply
• Banks may treat this as cash advance

This indirect method is often searched by people looking for how to get cash from a credit card, but it comes with risks and restrictions.

Balance Transfer to Bank Account

Some banks offer a facility where you can transfer a part of your credit limit directly to your bank account.

Key features:

• Amount is credited directly to your savings account
• Interest rate may be lower than cash withdrawal
• Repayment can be done in EMIs

This option is safer and more structured compared to ATM withdrawals.

EMI-Based Cash on Credit Card

Many banks offer pre-approved cash offers on credit cards, allowing you to withdraw cash and repay it in EMIs.

Benefits:

• Fixed monthly instalments
• Lower interest than cash advance
• Clear repayment schedule

Drawbacks:

• Processing fee applies
• Interest still higher than personal loans

If you are exploring how to get cash from a credit card for planned expenses, EMI-based cash is a better option.

Using Credit Card Through Merchant Payments

Some people use credit cards to pay a trusted merchant, who then gives cash in return. This method is risky and not recommended.

Risks:

• Against bank rules
• Can lead to card blocking
• Legal and ethical issues

Do not opt for such methods even though they seem easy.

Fees, Interest Rates, and Hidden Charges

Before taking cash from your credit card, it is important to understand the costs involved.

Common charges include:

• Cash advance fee: 2% to 3%
• ATM charges
• GST on fees
• High interest rate
• Late payment penalty

Always read your credit card terms to avoid surprises.

Risks and Drawbacks of Taking Cash from Credit Card

Using a credit card for cash can end up in financial stress, if not managed properly.

Major risks:

• Debt trap due to high interest
• Reduced available credit
• Impact on credit score
• Difficulty in repayment

Knowing these risks is crucial before deciding how to get cash from a credit card.

When Should You Use Credit Card Cash?

Credit card cash should be used only in:

• Medical emergencies
• Urgent travel needs
• Short-term cash gaps

Avoid using it for:

• Shopping
• Lifestyle expenses
• Long-term needs

Smart Tips to Reduce Cost When Taking Cash

If you must take cash from your credit card, follow these tips:

• Withdraw minimum required amount
• Repay as early as possible
• Choose EMI options if available
• Avoid repeated withdrawals
• Do not miss payment deadlines

These steps can reduce interest burden significantly.

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Alternatives to Credit Card Cash Withdrawal

Before thinking of how to get cash from a credit card, consider these options:

• Emergency fund
• Personal loan
• Loan from friends or family
• Salary advance
• Overdraft facility

These options are often cheaper as well as safer.

Key Takeaways

• Credit cards provide cash, but at a higher cost
• ATM cash withdrawal is the most expensive method
• EMI-based cash and balance transfer are better options
• Interest starts immediately on cash withdrawals
• Use credit card cash only in emergencies
• Always plan repayment before withdrawing

Being aware of how to get cash from a credit card is important. It helps you avoid financial mistakes and also manage emergencies responsibly.