A handful of credit cards like Bajaj Finserv co-branded cards offer you a cash withdrawal facility without charging a Credit Card Cash Advance Fee or an interest rate for up to 50 days. While the facility to swipe credit card and get cash is quite a relief for immediate financial needs, you must consider a few essential points.
Credit limit
Your credit limit is the maximum amount that you can withdraw through your credit card using a credit card swipe machine. Before using it at an ATM, check your available credit limit and ensure that the amount you intend to withdraw does not exceed it. Exceeding your credit limit can lead to additional charges, such as credit card swipe charges, as well as hurt your credit score. Learn about how to check, calculate, and improve your credit score here.
Security concerns
ATMs can be targeted by thieves, and you need to take measures to protect yourself from fraud and theft.
- Use ATMs in well-lit and monitored areas to avoid theft
- Be aware of skimming devices, which are small electronic devices that are installed on ATM machines to steal credit/debit card information and PIN numbers
- Cover the keypad while entering your PIN to avoid shoulder surfing
- In case of any suspicious activity, contact the bank immediately
Fees and charges for credit card cash withdrawal
Using credit cards at ATMs can come with a range of fees and charges. Before withdrawing cash, you need to consider the transaction fees imposed by your credit card provider. Some banks require a one-time fee while others charge a percentage of the transaction amount as a fee. It is important to understand and compare these fees across different banks and credit card providers.
By keeping the above-mentioned considerations in mind, you can use your credit card at an ATM more wisely and reduce any unnecessary financial burdens.
