You can withdraw money from credit card by going to ATM in the same way as you withdraw money from debit card, but if you are worried about credit score then read ahead first.
Credit Card ATM Cash Withdrawal: When there is no cash left in hand at the end of the month, or when there is a sudden need for cash and there is no other option, then people often turn to their credit cards. Banks not only give you loan on cards, now like debit cards, cash advance facility is also available on credit cards. You can withdraw money from credit card by going to ATM in the same way as you withdraw money from debit card, but if you are worried about credit score then read ahead first.
Does it affect your credit score?
Your credit score depends on many things. In simple words, withdrawing cash from ATM through credit card does not cause your credit score to fall, but it can definitely become the reason behind the score falling. That is, it does not have a direct impact, but some things happen due to which your score goes down. For example, this increases your outstanding balance and credit utilization ratio, which reduces your credit score.
What are the disadvantages of withdrawing cash from credit card?
When you withdraw cash from credit card, higher interest rates are charged on this loan. On top of that, you do not get any grace period on this, which means the interest rates start rising immediately. Apart from this, you also have to pay a fee, it is either a flat rate or some percentage of the advance cash. If you are withdrawing cash from an ATM, you may also have to pay a small usage fee.
In the end, understand this, withdrawing cash from the credit card does not affect your score, but if you do not repay the interest immediately, your debt increases and at a faster rate. The loan accrues from the day you take the loan and finance charges apply until you make the repayment.
