Credit cards are broadly used in the purchase of goods. However, there may be moments when you have to get some money instead of buying products. The direct withdrawal of cash against your credit card is referred to as a cash advance.
How to Withdraw Cash From Your Credit Card Without Paying Extra Charges?
Banks demand fees and very high interest in situations where the cardholder performs a cash advance and this can be expensive. A lot of people desire to understand the ways to withdraw cash from their credit cards without paying those additional expenses.
In this article from Kreditwala News, you will learn some ways to withdraw money from your credit card without paying extra charges. But always remember, it would also be wise to ensure that none of these methods violates the particular rules of the card you are using. Let’s start:
Balance Transfer to Your Bank Account
A lot of credit cards are available in India where users can always transfer money from the cards to their savings or current bank accounts. This is usually referred to as balance transfer. It is a technique through which one can withdraw cash without having to visit an ATM.
This has to be done either through a phone call or the banking application. HDFC, ICICI, IDFC, and SBI are some of the banks that provide this service with a few credit cards. But be careful because there might still be costs. Some banks charge a fee for balance transfers. This fee is often lower than cash advance fees. Also, the interest rate might be less than for cash advances.
Before you do a balance transfer, check with your bank. Ask about any fees or charges. Compare these costs to cash advance fees. Sometimes, balance transfers can save you money. But not always. It depends on your bank and your card’s rules.
Overpayment Method
One way to get cash from your credit card is the overpayment method. Here’s how it works:
- Pay more than your dues on your credit card bill.
- This creates extra money in your account.
- Ask your bank to give you this extra money back.
For example, if your dues is 5000 rupees, pay 10000 rupees. Now you have 5000 rupees extra in your account. You can ask for this money back.
But be careful. Some banks don’t like this and they might block your credit card. Always check with your bank first before trying this method.
Use Online Payment Services
Online payment services are popular in India. You can use them to get cash from your credit card without big fees. Some common services are HDFC PayZapp, and Mobikwik.
Here’s how you can use these services:
- Install the app on your phone and make an account if you don’t have one.
- Add your credit card to the app by entering your card details.
- Verify the KYC to use the app’s wallet services.
- Now add money to your wallet through your credit card.
- Once the money is in your app wallet, you can move it to your bank account.
Some apps let you do this for free while some apps charge money which is relatively less compared to other methods.
Rent Payment
Using a credit card to pay rent is also one of the best ways through which you can get cash. If your landlord accepts online payments, then you can send your rent money through credit cards if you wish. Then, ask your landlord to return the extra amount in cash, beyond your rent.
For example, if your rent is just 10,000 rupees, then you should pay 15000 rupees in total, demanding a refund of another 5,000 rupees in cash.
However, if you don’t live in a rented place then do not worry, it is easier to transfer money to yourself. Just enter your UPI ID or your friend’s UPI Id. After that, you can enter the particular amount and the money will be transferred to your bank account.
Pay Merchants Through Rupay Credit Cards
RuPay credit cards can help you get cash without fees. Yes, you heard it right. Some shops let you pay more than what you buy. They give you the extra money as cash. For example, if you buy something for 500 rupees, you can pay 1000 rupees. The shop gives you 500 rupees back in cash. This is like getting cash from your credit card. But not all shops do this. You need to ask first.
Conclusion:
Getting cash from your credit card without fees can be tricky. Always check your card’s rules first. Be careful and use these methods wisely. If you need help with credit cards or loans, visit Kredit wala. They offer good advice and options. Kreditwala can help you make smart money choices. Visit their website today to learn more about your credit options.
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