Can You Use Your Credit Card At An ATM To Withdraw Cash?

Credit cards are valuable financial tools that can be helpful in times of emergencies when you running short of funds. Read on!

<div class="paragraphs"><p>Source: Eduardo Soares on Unsplash&nbsp;</p></div>
Source: Eduardo Soares on Unsplash 

There might be rare situations when you are in dire need of cash but do not have the necessary funds in your account, or perhaps you cannot successfully access the funds in your account. In this scenario, arranging cash can provide to be a difficult challenge. However, if you have a personal credit card, you can use the credit card to withdraw money from an ATM, but it’s recommended that you should only do this in case of emergencies and urgent needs. It’s also important to remember that you will only be able to withdraw money from the ATM using your credit card till the maximum credit limit that is offered by the bank. If you have already exhausted your credit limit, you might not be able to get cash from an ATM using your credit card. 

Credit Cards Have A ‘Cash Advance’ Feature

Most banks offer their credit card users the ability to withdraw a set amount of money through ATMs using credit cards, which is called the ‘Cash Advance’ feature. Sometimes, the cash advance feature is linked to the credit card’s spending/credit limit and you can withdraw funds if you have not gone beyond your credit limit. However, in many cases, banks provide a different limit for ‘Cash Advance’ which is separate from your credit limit. In this case, usually the limit for a cash advance is much lower than the actual credit limit. However, using your credit card to withdraw money from an ATM might not always be the best idea.

Fees For Withdrawing Cash At ATMs Using Credit Card

As mentioned above, you should only use your credit card to withdraw money from an ATM in case of emergencies. The reason behind this is that banks often charge much higher interest rates on the cash that you withdraw from ATMs using your credit cards. In addition to paying back the cash that you have withdrawn using your credit card, you will also have to pay back hefty interest on it. The additional interest charges for cash withdrawal can be a major cost when repaying your credit card debt. Some banks also charge a flat credit card cash withdrawal fee apart from the interest and this fee can also be quite steep. Instead of a flat fee, some banks may also charge a percentage of the cash withdrawal as fees. Moreover, ATM fees might also apply to these transactions.

Due to all these extra fees and higher interest charged on withdrawing money through, it’s better to avoid it unless absolutely necessary.  If you do not repay the full due amount on time, you may also have to face late payment charges, not to mention failing to repay or delay in repayment of your credit card debt can also lead to your credit score going down. More importantly, you should go through the terms and conditions of your credit card to understand exactly how much interest/fees your bank charges and if they have any other conditions/rules associated with withdrawing cash using ATM. If you do not repay the due amount