Sometimes we got into situation when we need urgent money and unfortunately we are out of cash and having zero balance in our bank account. May be some people manage to gather some money from their friends or closed ones for that situation, but many people might not able to do so at that time.
Just like Debits cards many people hold credit cards which they normally use for shopping at malls, Online shopping and by swiping card. There are zero charges if you use your credit card for online shopping or for paying goods from retailer and at the end of your billing cycle paying your credit card bill.
Credit cards come with variable credit limit different to each customers, and within that limit we can use our card for our daily shopping needs, but you can also withdraw cash out of your credit card from ATM with specific limit, if you need it very urgently. Credit card company’s use the word Cash Advance for cash withdraw from ATM. However withdrawing cash from credit card is kind of very dangerous thing i can say. Because unlike swiping card at malls or buying from online shopping site which attracts no extra charges, if you withdraw money from ATM you will be charged heavily that depends on how much cash you withdraw and for how long you hold that cash.
The charges attracted by credit card provider for withdrawing cash is variable. some banks charges a transaction fee of 2.5% that calculates to Rs.250 to Rs.350 on the amount withdrawn and also charges finance charge of 2.95% per month from the date of withdrawal until the date of full payment. So even if you withdraw Rs.100 rupees from your Credit card you will be charged Rs.300 plus finance charges from date of withdrawal until you make full payment.
So all in all you should avoid withdrawing cash from your credit card even in urgent situation. Today i will explain you some ways to get cash out of your Indian credit cards in urgent situation without paying any charges or very nominal charges. You can get cash out of your credit card by using Mobile wallet services.
There are different Digital Mobile wallet service providers available in india like Paytm, Mobikwik, Citrus wallet, Oxigen wallet, JIO money, Airtel money, Vodafone mpaisa, Idea wallet etc. You can fund your Mobile wallet from credit card and withdraw that amount to your bank account from your mobile wallet. Some wallet providers charge different fees to withdraw money to bank and some charges no amount to very little amount.
Below i have listed some mobile wallet service providers which charges no fees to nominal fees for withdwal of money from wallet to bank account.
- Citrus wallet : Citrus wallet charges no money for withdraw to bank account upto Rs.3000 per month. You can read all their FAQ about money withdrawal to bank account here.
- oxigen wallet : Oxigen wallet comes with Maximum cash load of Rs. 10,000 per month. Wallet to bank account charges are Rs.5/- or 3% of transaction amount whichever is higher.
- Udio wallet : With Udio wallet user can transfer up to Rs.500 per month for free. Udio Premium users can transfer upto Rs.5000 per month for free. Bank transfers made above the limit will be charged a per transaction fee of 2.95% for Udio users and 1.00% for Udio Premium users of the total amount or Rs.10, whichever is higher.
- Paytm wallet: Paytm charges 4% fee to transfer paytm wallet to bank transfer
- Mobikwik wallet : Mobikwik wallet also charges 4% fees to transfer wallet amount to bank account.
So instead of withdrawing money from ATM with your credit card, you can use these wallets by funding from credit card and then withdrawing the same amount to your bank account when you are in urgent situation. With this method you can skip the heavy charges levied by your bank for money withdrawal and also you can use the amount for 45 days without paying any charges to credit card provider.