Best Credit Cards for Cash Advances

Sometimes, you may need quick cash during emergencies, and using credit cards for cash advances can be a convenient solution. Cash advances let you withdraw money from an ATM using your credit card. However, they come with extra charges like cash advance fees and higher interest rates. Choosing the right credit card can help you reduce these costs. This article covers some of the best credit cards for cash advances in India that offer lower fees and flexible withdrawal limits.

Top Choices for Credit Cards with Cash Advance Benefits

Here are some of the best credit cards for cash advances that you can consider:

HDFC Bank Millennia Credit Card

The HDFC Bank Millennia Credit Card is known for its cash withdrawal feature with a decent cash advance limit. Although there are charges involved, it allows quick access to cash whenever needed.

• Cash Advance Fee: 2.5% of the amount withdrawn or ₹500, whichever is higher
• Interest Rate: 3.6% per month until repayment
• ATM Access: Available at both HDFC Bank and other bank ATMs

Using credit cards for cash advances like this can be helpful when you need cash quickly, but it’s important to repay the amount as soon as possible to avoid high-interest charges.

SBI SimplySAVE Credit Card

The SBI SimplySAVE Credit Card offers an easy cash withdrawal facility with a reasonable cash advance limit. It is accepted at most ATMs across India, making it convenient for urgent cash needs.

• Cash Advance Fee: 2.5% or ₹500 (whichever is higher)
• Interest Rate: 3.5% per month from the transaction date
• ATM Access: Withdraw cash from over 1 million Visa and MasterCard ATMs worldwide

This credit card for cash advances is ideal for those who may need emergency cash occasionally without facing too many charges.

ICICI Platinum Chip Credit Card

The ICICI Platinum Chip Credit Card is suitable for cash withdrawals and everyday expenses. It has a user-friendly cash advance feature with widespread ATM availability.

• Cash Advance Fee: 2.5% of the withdrawn amount or ₹500, whichever is higher
• Interest Rate: 3.4% per month until full repayment
• ATM Access: Available at all ICICI Bank and partner ATMs

When using credit cards for cash advances like this, you should always check the applicable charges to avoid surprises later.

Axis Bank My Zone Credit Card

Axis Bank My Zone Credit Card offers a reliable cash advance facility, making it helpful during emergencies. It allows you to withdraw cash from a wide network of ATMs.

• Cash Advance Fee: 2.5% or ₹500 minimum
• Interest Rate: 3.5% per month
• ATM Access: Accepted at Axis Bank and other bank ATMs

This is one of the credit cards for cash advances that provides flexibility but should be used carefully to avoid high-interest costs.

Bank of Baroda Easy Credit Card

The Bank of Baroda Easy Credit Card offers a cash withdrawal facility with a fair cash advance fee. Its widespread ATM network allows quick access to cash.

• Cash Advance Fee: 2.5% of the amount withdrawn or ₹500 minimum
• Interest Rate: 3.49% per month until repayment
• ATM Access: Accepted at all major ATMs in India and abroad

For those seeking credit cards for cash advances, this card can be a good choice when you need cash urgently but still want to avoid excessive fees.

Things to Keep in Mind While Using Credit Cards for Cash Advances

While credit cards for cash advances can be useful, there are some points you should consider before using this facility:

1. Higher Interest Rates: Interest starts accruing immediately after the withdrawal, without any grace period.
2. Additional Fees: Cash advances come with separate fees apart from the regular interest charges.
3. No Reward Points: Most credit cards do not offer reward points for cash advance transactions.
4. Impact on Credit Limit: The withdrawn amount reduces your available credit limit until you repay it.
5. ATM Charges: Using non-bank ATMs may add extra ATM transaction charges.

Using credit cards for cash advances should be your last resort during emergencies. Always explore other options like personal loans or borrowing from friends to avoid high charges.

Tips for Using Cash Advance Facility Wisely

If you must use the cash advance facility on your credit card, here are some tips to use it wisely:

• Borrow Only What You Need: Withdraw the minimum required amount to reduce fees and interest.
• Repay Quickly: Pay back the cash advance as soon as possible to avoid high-interest accumulation.
• Check Your Statements: Always monitor your credit card statements to keep track of charges and repayments.
• Avoid Frequent Withdrawals: Frequent use of the cash advance facility can lead to high fees and increased debt.

Also Read: How to Handle Credit Card Debt Effectively

Conclusion

Credit cards for cash advances are useful during emergencies when you need quick cash. However, they come with high fees and interest charges, so you should use them carefully. The best credit cards for cash advances, like those from HDFC Bank, SBI, ICICI Bank, Axis Bank, and Bank of Baroda, offer lower fees and widespread ATM access. Always borrow only what you need and repay it promptly to avoid extra costs. Using credit cards for cash advances responsibly can help you manage sudden financial needs without falling into debt.