What is Credit Card Cash Advance | ICICI Bank

DISCLAIMER

The contents of this document are meant merely for information purposes. The information contained herein is subject to updation, completion, revision, verification and amendment and the same may change materially.... The information provided herein is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person‘s nationality, residence or otherwise) be contrary to law or regulation or would subject lClCl Bank or its affiliates to any licensing or registration requirements. This document is not an offer, invitation or solicitation of any kind to buy or sell any security and is not intended to create any rights or obligations. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. Please obtain professional legal, tax and other investment advice before making any investment. Any investment decisions that may be made by you shall be at your sole discretion, independent analysis and at your own evaluation of the risks involved. The use of any information set out in this document is entirely at the recipient's own risk. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith by lClCl Bank and from sources deemed reliable. There can be no assurance that such projections will prove to be accurate. lClCl Bank does not accept any responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on anything set out in this document. The information set out in this document has been prepared by ICICI Bank based upon projections which have been determined in good faith and sources considered reliable by lClCl Bank. In preparing this document we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us or which was otherwise reviewed by us. Past performance cannot be a guide to future performance. 'lClCl ' and the 'I-man' logo are the trademarks and property of lCICl Bank. Misuse of any intellectual property, or any other content displayed herein is strictly prohibited.Read more

Sometimes you just need access to quick cash to handle an emergency situation. Dipping into your savings may seem like the only way to cope with this situation, but it isn’t true. If you have a credit card, you can conveniently take a cash advance to tide over the emergency. But before you reach out for your credit card, know the following things about cash advances.

What exactly is a cash advance on credit cards?

A cash advance on a credit card is a way to get the money right away by making a withdrawal using the credit card. There are three ways to make cash advances on credit cards – at ATMs, bank branches, and online banking.

Such cash advances come with a limit, and the banks mention the exact amount that you are allowed to withdraw as the cash advance in the credit card statement. Usually, this amount is equal to or lower than the credit limit on the card. Cash advances are made through ATMs in the same way as cash withdrawals are made using debit cards. You will have to pay credit card cash withdrawal charges.

Things to remember when you withdraw money from a credit card

Though a cash advance is not a good decision financially, it becomes the last resort in some cases. So, if you have to make a cash advance, keep the following points in mind:

1. Understand payment allocation

If you are just making minimum payments on the credit card for a specific billing cycle and you have taken a cash advance, the payment goes towards the outstanding balance instead of the cash advance.

Cash advances carry a finance charge of 2.95% per month (APR 41.75% p.a.) from the date of withdrawal until the date of full payment. In case you don’t pay the cash advance amount on time, it gets carried forward in the next billing cycle, and you will end up paying a higher credit card interest rate. Hence, it is best to pay the minimum balance and the cash advance amount to avoid such situations.

2. Pay your cash advances off immediately

Your ICICI Bank credit card comes with so many lucrative offers. For instance, with the Platinum Credit Card, you get a 1% fuel surcharge waiver at all HPCL petrol pumps, reward points, and dining offers. Why would you risk it all by not paying your cash advances?

Cash advances do not have any grace or interest-free period. So, the interest will keep on accumulating at the present credit card interest rate. It is better to pay off the advance to enjoy the benefits in peace.

3. Know about the rules and regulations

A bank has its own rules and regulations in terms of cash advances and related interest rates. It is advisable to go through the rules and regulations for your particular credit card on the bank’s site or in the material sent to you with the card.

Conclusion

And now you know what a cash advance is and how not to let it increase your credit card bills. So, do not hesitate to take a cash advance on your credit card the next time you really need it. Just remember to pay it back responsibly!