How to Get Cash from a Credit Card at The ATM

ALEX4 weeks ago

Table of Contents

Obtaining a secured credit card is quick and easy. This financial tool provides the convenience of instant cash withdrawals from ATMs, especially in times of unforeseen emergencies. Yet, the question arises: is using a credit card for cash withdrawals a wise choice?

A visit to an ATM allows you to effortlessly withdraw the required amount, adhering to your predetermined maximum limit. The process doesn’t necessitate any bank authorisations.

However, before embarking on the path of withdrawing cash from credit cards, it’s important to assess its implications.

Key Considerations Before Opting for a Cash Advance

There may be an emergency when you need a cash advance. However, regardless of the circumstance that led you to an ATM with your credit card, you must plan to repay cash as quickly as possible. With these added benefits, a cash withdrawal from an ATM by credit card has three significant disadvantages.

Let’s look at them one by one.

Fees and charges

Firstly, your bank will impose a cash advance fee each time you use a credit card at an ATM. As ATM costs are already more expensive than ever, paying an additional fee on your ATM cash withdrawal transaction, known as a credit card withdrawal charge, is an extra expense you should try to avoid wherever possible. You might incur a particular cost, depending on the issuer.

High-interest rates

Since cash advances don’t have grace periods, the interest charged on them can be far higher than the interest rate your credit card company applies for purchases. Interest charges on a cash advance could considerably increase your debt if you often use it for that purpose and wait to pay it off.

Negatively impact your credit score

The third disadvantage is related to your credit rating. Be prepared for a decline in your credit score because taking out a cash advance will reduce your available credit. In other words, if interest starts to accrue immediately and the balance is not paid off, your credit utilisation rate will increase, and your credit score will decrease.

How to Withdraw Cash From an ATM by Credit Card?

Using your credit card to withdraw money from an ATM can be a practical alternative if you need cash immediately and only have a few other options. This procedure allows you to get cash quickly, much like using a debit card, but there are a few points to be aware of. We’ll walk you through the quick process of using your credit card to make an ATM cash withdrawal in the following steps:

Firstly, check your available credit. It’s crucial to check your latest credit card account statement as it will help you determine how much credit is available for cash withdrawal.
Find a nearby ATM to withdraw cash from your credit card. ATMs that support cash advances will display logos or signs indicating their compatibility with significant credit card networks.
Insert your credit card into the card slot provided. Make sure to insert the card in the correct orientation as indicated by the ATM.
The next step is to enter your credit PIN. If you are unsure of your PIN or still need to set one up, call the number on the back of your credit card to inquire or set it up.
Now look for “Cash Withdrawal” or “Cash Advance” and select it to proceed with the cash withdrawal process.
Some ATMs may prompt you to select “Credit” or “Debit” when performing a cash withdrawal. In this case, choose the “Credit” option.
Enter the total amount you want to withdraw from your credit card account.
Review the details of your cash withdrawal transaction on the ATM screen, including the amount and any associated fees. If everything looks correct, proceed to confirm the transaction.
Once the transaction gets completed, the ATM will dispense the requested amount in cash. Collect your money and take the transaction receipt for your records.

Conclusion

Withdrawing cash from a credit card through an ATM can be an option in emergencies or when cash is the only accepted form of payment. However, knowing the associated fees and higher interest rates for cash advances is essential.

Before proceeding, you must carefully review your credit card terms, understand the costs involved, and explore alternative options for accessing cash. Responsible financial management will help you make informed decisions and avoid unnecessary debt.