Credit card cash withdrawal charges can quickly add up, especially if you frequently rely on this option to access cash. However, there are ways to avoid these charges and save money in the process. In this article, we’ll discuss some tips and tricks for avoiding credit card cash withdrawal charges.
Use a Debit Card Instead
- One of the easiest ways to avoid credit card cash withdrawal charges is to use a debit card instead. Debit cards are linked directly to your bank account, which means you can withdraw cash without incurring any fees or interest charges. If you’re concerned about security, many banks offer debit cards with fraud protection and other security features to protect your money.
Use Online Payment Services
- Online payment services such as PayPal, Venmo, and Cash App can be a convenient way to access cash without using a credit card. These services allow you to send and receive money online, and some also offer physical debit cards that you can use to withdraw cash from ATMs. While there may be fees associated with using these services, they are typically much lower than credit card cash withdrawal charges.
Take Advantage of Cashback Rewards
- Many credit cards offer cashback rewards for certain purchases, such as buying groceries with credit card. If you use your credit card to buy groceries and pay off the balance in full each month, you can earn cashback rewards without incurring any interest charges or fees. Some credit cards even offer higher cashback rewards for specific categories, such as groceries, gas, or dining.
Look for Credit Cards with Low Cash Advance Fees
- If you do need to use your credit card for cash withdrawals, look for cards with low cash advance fees. These fees can vary widely depending on the card issuer, so it’s important to shop around and compare offers. Some credit cards also offer introductory 0% APR periods for cash advances, which can save you money on interest charges.
Use Balance Transfer Offers
- If you’re struggling with credit card debt and need access to cash, consider using a balance transfer offer instead of a cash advance. Many credit cards offer balance transfer promotions with low or 0% APR for a limited time. You can transfer the balance from your high-interest credit card to the new card and pay off the debt without incurring any interest charges. However, be aware that balance transfer fees may apply, so make sure to read the terms and conditions carefully.
Also Read: Best Cash Back Credit Card/Money Back Credit CardsÂ
In conclusion, credit card cash withdrawal charges can be a costly and avoidable expense. By using a debit card, online payment services, cashback rewards, low-fee credit cards, and balance transfer offers, you can avoid or minimize these charges and save money in the process. Additionally, consider using your credit card responsibly, such as buying groceries with a credit card and paying off the balance in full each month, to earn cashback rewards and avoid interest charges. With a little bit of planning and smart financial management, you can reduce your reliance on credit card cash withdrawals and save money in the long run.
It’s important to note that credit card cash withdrawals should generally be avoided unless it’s an emergency. The fees and interest rates associated with cash advances are typically much higher than those for regular credit card purchases, which can make it difficult to pay off the balance in full. In addition, cash withdrawals may also have a negative impact on your credit score, as they can be seen as a sign of financial distress or poor money management.
If you do need to use a credit card for a cash withdrawal, make sure to read the terms and conditions carefully and understand the fees and interest rates associated with the transaction. Try to pay off the balance as soon as possible to avoid accruing additional interest charges. And most importantly, make a plan to avoid relying on credit card cash withdrawals in the future by building up an emergency fund, using alternative payment methods, and practicing smart financial habits.
