How to Avoid Credit Card Cash Withdrawal Charges

Smart alternatives and money-saving tips to avoid expensive cash advance fees

🚨 Why You Should Avoid Credit Card Cash Withdrawals

  • High fees: 2.5% of withdrawal amount (minimum ₹500)
  • Expensive interest: 3.5%+ monthly (42%+ annual)
  • Immediate interest: Starts from withdrawal date, no grace period
  • Additional GST: 18% tax on both fees and interest
  • Credit score impact: High credit utilization affects your score

💡 Better Alternatives to Credit Card Cash Withdrawal

UPI Payments

Use UPI for most transactions instead of cash.

  • ✓ Free transactions
  • ✓ Instant transfers
  • ✓ Accepted everywhere
  • ✓ No fees or charges

Debit Card

Use debit card for ATM withdrawals.

  • ✓ Free withdrawals (5 per month)
  • ✓ Your own money
  • ✓ No interest charges
  • ✓ Wide ATM network

Personal Loan

For emergencies, consider personal loans.

  • ✓ Lower interest (10-15% annual)
  • ✓ Fixed EMI structure
  • ✓ Larger amounts available
  • ✓ Better for planning

Borrow from Family/Friends

Short-term borrowing from trusted contacts.

  • ✓ No interest charges
  • ✓ Flexible repayment
  • ✓ No credit impact
  • ✓ Quick availability