Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • Credit Cash Advance

    Looking for a way to access quick and convenient cash without having to dip into your savings might seem like an unrealistic hope, but with a cash advance, you can do just that.

    While not advised due to the high charges associated with them, cash advances are an option for when all else has been exhausted.

    What Is a Credit Card Cash Advance

    A credit card cash advance is way to obtain money immediately by means of making a withdrawal through your credit card. Cash advances can be made at ATM’s as well as at bank branches and through online banking.

    Cash advances also carry a limit and banks will mention the amount of money you can withdraw as a cash advance in your credit card statement. This amount is usually your credit limit or an amount lower than your credit limit.

    A cash advance can be made through an ATM in a manner similar to a cash withdrawal using a debit card.

    When visiting a bank branch for a cash advance, you will have to hand over your credit card and the teller will provide you with the amount of money you have asked for, subject to your cash advance limit.

    Cash Advance Fees

    As stated earlier, cash advances are chargeable transactions made on your credit card. Like all credit purchases, a cash advance also attracts interest. In the case of purchases charged to your credit card, your outstanding amount will attract interest only if the full amount has not been paid by the due date. However, unlike other credit purchases, the cash advance will begin accruing interest from the day the cash advance is made.

    Cash advances have a separate upfront charge, which will reflect in the credit card statement. The fee differs from bank to bank, but the minimum is usually 2.5% of the amount being withdrawn.

    This fee is chargeable over and above your regular credit card interest charges, which could result in you paying a high sum if you already have an outstanding unpaid balance on your credit card.

    Cash advances attract a higher interest rate as banks view them as high risk. Customers who make cash advance transactions may be unable to repay the amount loaned to them through the cash advance, resulting in the bank having to write off that amount. Unlike credit card transactions, banks are unable to recover the amount they loan you as a cash advance. This makes them riskier than loans, since all loans require a collateral, which the bank can claim in case the customer does not return the amount, while cash advances do not.

    Points to Remember Regarding Cash Advances

    A cash advance might not be a good financial decision, but if it’s a last resort, here are some points you should keep in mind before making that withdrawal:

    1. Payment allocation

    If you’re only making the minimum payment on your credit card for a particular bill cycle and if you’ve made a cash advance, the payment will go towards your outstanding balance and not towards your cash advance. This is because banks choose to pay off amounts with a lower interest charge by default. Since your cash advance attracts a higher interest right from the day the advance is made, this transaction would be a much higher amount. If this amount is carried forward to your next billing cycle, you would be paying a very high interest rate. To avoid such a situation, it is advisable to pay your minimum balance and the amount of the cash advance.

    1. Read the fine print

    Each bank has its own terms and conditions regarding cash advances and the interest applicable on them. In some cases, the terms differ for different types of credit cards as well. To avoid being charged extra, you should always go through the terms and conditions for your specific credit card on the bank’s website or in the material sent along with your card.

    1. Pay off cash advances immediately

    Cash advances accrue interest from the day the advance is made. In other words, there is no grace or interest-free period when it comes to cash advances. To avoid paying a hefty fee in terms of interest on this transaction, consider paying off the cash advance as soon as possible if you have no other transactions on your credit card.

    1. Purchases to avoid on your credit card

    While a cash advance is generally perceived to be a withdrawal of funds from your credit limit, banks also consider other transactions charged to your credit card as cash advances and levy high interest charges on these transactions. Avoid paying for these on your credit card to prevent being charged a higher interest rate:

    • Traveller’s cheques.
    • Foreign currency.
    • Gambling and lottery tickets.
    • Using an ATM abroad for a cash advance.
    1. No purchase protection

    A number of banks offer purchase protection of up to 6 months on purchases made through a credit card. However, this privilege does not extend to purchases made with cash advances.

    A cash advance is something to be avoided due to the charges and risks associated with them. If, however, you have exhausted all other options, keep in mind the tips provided above and try to keep cash advances to a minimum to ensure you have a healthy line of credit.

      

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    Credit Cash Advance Reviews

    • Bank Bazaar Credit Card
      "Got my free credit card through Bank bazaar"
      0.5 5.0/5 "Blown Away!"
      I got my new credit card from Bank bazaar based on my credit score . When I am checking free credit score in their portal , I got a call from the sales team . Based on my score there was a life time free card is available . Then I decided to go with this card .
      Was this review helpful? 0
      , coimbatore
      Reviewed on Apr 24, 2019
    • Bank Bazaar Credit Card
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have been using bank bazaar service for first time, i came to know about this bank bazaar service through on line,i am happy with their service and i have applied for credit card from them, i have not faced any issue or difficulty in that getting my credit card, whole process when smoothly and i have used mobile application it is easy to access.
      Was this review helpful? 0
      , new delhi
      Reviewed on Apr 24, 2019
    • Punjab National Bank Credit Card
      "Good"
      0.5 3.0/5 "Satisfactory"
      I have one more credit card last two years from punjab national bank , this is free card , but I am not satisfied with credit limit just 10k after using 1.6years then increase only 10k , now credit limit is 20k , and their customer service is good ,
      Was this review helpful? 0
      , new delhi
      Reviewed on Apr 24, 2019
    • RBL Bank Credit Card
      "Very good"
      0.5 4.0/5 "Great!"
      Their customer service is not good I try but every time call is not going , I have taken one RBL credit card here is credit limit is 45k not much happy ,last one years I have this credit card , I am not getting any offer , and I dont know this is charges or free , but I am satisfied with this credit card ,
      Was this review helpful? 0
      , new delhi
      Reviewed on Apr 24, 2019
    • HDFC Bank Credit Card
      "Average card"
      0.5 3.0/5 "Satisfactory"
      I have been applied for HDFC BUSINESS MONEYBACK credit card for recently, they have not charged me annual fee as it is life time free credit card, the credit limit which they have given to me was okay, the card came on time there was no delay or issue in getting card.
      Was this review helpful? 0
      , new delhi
      Reviewed on Apr 24, 2019
    • YES Bank Credit Card
      "Not upto the expectation"
      0.5 3.0/5 "Satisfactory"
      Yes bank has not given me the expected credit limit when I was promised before buying this credit card . I am not received any promotional offers for this card . But the executive has given big hype about having and using this card . There will be huge credit limit and so many offers will be available .
      Was this review helpful? 0
      , coimbatore
      Reviewed on Apr 24, 2019
    • Bank Bazaar Credit Card
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I came to know about bank bazaar service through on line, this is my first time i have been availing their service, their website is good, but one thing i would like to suggest them is that stop doing too much of spamming call, i use to get too much of call from them.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 24, 2019
    • RBL Bank Credit Card
      "Need improve their customer care"
      0.5 5.0/5 "Blown Away!"
      I am happy with the service of RBL bank, but i am not happy with their customer care service they are not up to the mark, as i use to get too much call a day i use to get call up to 40-50 times, and there is language barrier as well, they do not speck English properly,i have been using this card from past one and half years,but from last 3 months i face this issue.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 24, 2019
    • American Express Credit Card
      "Outlets should be increase"
      0.5 3.0/5 "Satisfactory"
      I hold Amex credit card from long time, but i am not happy with the card, their service is good, but it is not useful for me, they should increase in many outlet this card, even i do transaction in on line, i could not do online transactions as it use to show as invalid offers for amex card.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 24, 2019
    • ICICI Bank Credit Card
      "Need to increase the Credit Limit"
      0.5 5.0/5 "Blown Away!"
      I am using ICICI credit card for 3 and half years, its a good one to use, but while applying they provided credit limit as 15 thousands post that they increase to 25 only, i would like to suggest to provide more credit limit, mean while the customer service was good.
      Was this review helpful? 0
      , chennai
      Reviewed on Apr 24, 2019
    • Bank Bazaar Credit Card
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I came to know about bank bazaar service through on line, this is my first time i have been applied for their service, their mobile application is good,it is user friendly application, but one thing i would like to suggest them is that they should reduce the call flow.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 24, 2019
    • Bank Bazaar Credit Card
      "Overall experience is good"
      0.5 4.0/5 "Great!"
      The customer services and response is good at Bankbazaar. I got regular messages about the updates. The website is good and it is easy to use and understand. There were follow up calls as well. It was easy to get the details of the banks and their offers too.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 24, 2019
    • IndusInd Bank Credit Card
      "Average card"
      0.5 3.0/5 "Satisfactory"
      I have been using Indusind bank credit card for recently, they have not charged me annual fee as it is life time free credit card, i am not happy with the credit limit they have given me less credit limit, like they said 75,000 i will be getting so far but after that they have just given me 50,000 as an limit, the reason for choosing this card is for their offers for shopping and movie tickets, there was much delay in getting loan, there was wrong information was given , the pin got generated after 15 days.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 24, 2019
    • HDFC Bank Credit Card
      "Good. Can do better"
      0.5 3.5/5 "Pretty good"
      The documents was taken on time for the credit card. The updates was not done for me. I had to call the person who took the documents and I was told that the paper work is processed and I will get the card in few days. The follow up calls was not there with HDFC Bank. There are charges annually for the card.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 24, 2019
    • Bank Bazaar Credit Card
      "Good"
      0.5 4.0/5 "Great!"
      I came to know about bank bazaar through my friend because this is the good financial product, so once i download the app i repeatedly getting calls from bank bazaar, i would like to suggest to get minimum the calls. The best part of bank bazaar which i would like to share is providing the amazon voucher offer.
      Was this review helpful? 0
      , chennai
      Reviewed on Apr 24, 2019
    • HDFC Bank Credit Card
      "Good reward point"
      0.5 4.0/5 "Great!"
      I got my HDFC credit card very recently . in HDFC also I am not happy with the credit limit . I thought HDFC has a great brand value they always fulfill the customers requirement . But interms of credit point they made me so happy with that . Their credit point has some value .
      Was this review helpful? 0
      , new delhi
      Reviewed on Apr 24, 2019
    • SBI Cards Credit Card
      "Good card"
      0.5 5.0/5 "Blown Away!"
      I hold SBI credit card from long time, They have not charged me annual fee, they use to give good offers in shopping, i am happy with the credit limit which they have given to me, they use to give good offers based on my requirement so far i did not face any issue.
      Was this review helpful? 1
      , bangalore
      Reviewed on Apr 24, 2019
    • Bank Bazaar Credit Card
      "High level customer service"
      0.5 3.5/5 "Pretty good"
      Bank bazaar has proved strongly they are the masters of digital shopping . They know the nook and corner of the business strategy . I am so thankful for the bank bazaar customer service and guiding me a correct credit card according to my taste .
      Was this review helpful? 0
      , new delhi
      Reviewed on Apr 24, 2019
    • ICICI Bank Credit Card
      "Overall good"
      0.5 4.0/5 "Great!"
      I bank with ICICI Bank for a credit card. The customer services and response is good and there are good offers as well. Just that the credit limit is less. Else there are no hassles while using the card. The transactions are smooth and easy and no issues.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 24, 2019
    • American Express Credit Card
      "Completely disappointed with the credit limit"
      0.5 2.0/5 "Expected more"
      Highly disappointed with the American express service . When I am taking a card with very high interest with them they given a credit limit of only 25 k. I though it was a international credit card, their limit also will be in higher scale . But complete collapse of my dream .
      Was this review helpful? 0
      , new delhi
      Reviewed on Apr 24, 2019
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