You’ve probably been there at least once – standing at the ATM to realize that you left your debit card at home. Maybe you need more cash than you currently do in your bank account. Perhaps you are traveling and cannot use your debit card at local terminals. Can money be withdrawn from credit card?
Credit cards allow you to borrow money from your credit card issuer. Funds do not come directly from your checking account. You will have a loan balance for each advance payment that you must repay at a later date. Because it is a loan, your credit card is charged with interest. However, if you pay off your entire balance every month, you can usually avoid paying interest (and late payments).
In everyday spending, credit cards are more secure than debit cards for the following reasons:
- If someone steals your debit card or gets a card number, they can immediately empty your checking account, which can potentially make it difficult for you to pay your bills.
- Credit cards provide excellent consumer protection against fraud, limiting losses to $ 50, under federal law, for unauthorized charges. While most debit cards also protect against fraud and error, federal law is not as generous with credit card loss limits.
But credit cards also have disadvantages. The most important of them: they may tempt you to spend more than you can and end up with a high interest rate debt, which also damages your credit report, which can make it difficult to get important loans, such as a mortgage.
How to use a credit card at an ATM
Using a credit card at an ATM to get cash is very similar to withdrawing money using a debit card. Locate the ATM nearby, preferably on a network appropriate for the credit card issuer and not charging a fee.
After selecting the ATM you want to use, insert your credit card. The ATM may ask for the PIN code associated with this card. Since you don’t have to use your PIN when shopping with a credit card, you may not know it. You can solve this problem by calling the number on the back of your credit card and resetting your PIN.
Cash advances for using a credit card at an ATM
If you think that using a credit card at an ATM seems like a good idea, stop looking at the fees before inserting the card into the slot. There are two costs to consider when using a credit card at an ATM.
First of all, you may have to pay a fee in advance for using a credit card at an ATM. Depending on the credit cards you need to choose, it can easily cost 3% of your total withdrawal in addition to the fees charged by the ATM. For a $ 200 withdrawal at an ATM with a $ 4.00 fee you would pay $ 10 to withdraw this cash.
You can then hit a higher interest rate on your cash advance than standard purchases. Even some of the best credit cards charge more advances. If you do not pay the balance in full, it will quickly become a very expensive cash withdrawal.