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How to Withdraw Cash Using Credit Card in UAE

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Credit card cash withdrawal is the process of taking out cash from an ATM using a credit card. However, this is one of the most expensive forms of credit available for usage and hence should be used only in the case of an emergency. When you withdraw cash using a credit card in UAE, you will incur certain charges including credit card fees, withdrawal charges, and a few others. Read on to find out more about credit card cash withdrawal. 

What is Credit Card Cash Withdrawal Limit?

With a credit card cash withdrawal facility, you can take out cash up to your credit card limit from a bank or an ATM. Note that credit card companies offer a particular cash limit on your credit cards, which usually ranges between 20% and 40% of your entire limit. Moreover, when it comes to credit card limits, there are two limits we talk about - cash advance limit and credit limit. 

The credit limit is the total amount of money you can spend using your card. On the other hand, the cash advance limit is the maximum amount of money you can withdraw in cash. 

Pros and Cons of Cash Withdrawal through Credit Card

Credit card cash withdrawal comes with a set of advantages and disadvantages. Therefore, before using your credit card, make sure to understand the pros and cons of using this facility:

Pros:

  • Immediate cash from nearest ATM 24*7
  • No approval or documentation required 
  • Access to flexible limits 

Cons:

  • Heavy interest 
  • Cash advance fee is levied on every transaction
  • Cash withdrawal is usually not eligible for any credit card reward point 

What are Credit Card Cash Withdrawal Charges?

Credit card cash advance charges/fees is a charge that is levied every time you withdraw money using your credit card. It is usually a small percentage of the total amount you withdraw. Most banks charge around 2.5-3% of the total withdrawal amount as a credit cash advance fee. Note that the cash advance fee also comes with interest charges similar to the amount charged on withdrawn cash. Moreover, this fee is shown on the monthly credit card statement. 

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Credit Card Cash Withdrawal Charges on Top Credit Cards

The table below shows the cash advance fee charged by the popular credit cards in UAE-

Credit Card 

Cash Advance Fee

Mashreq Cashback Credit Card

3.15%

Citibank Cashback Credit Card

3%

HSBC Platinum Select Credit Card 

100 AED or 3%, whichever is higher

Standard Chartered MasterCard Platinum Credit Card 

105 AED or 3.15%, whichever is higher

What Are The Interest Charges on Credit Card Cash Withdrawals?

Credit card cash withdrawals are not subjected to interest-free periods. This means you will incur charges from the very first day of using your credit card. Note that the finance or interest charges are very high. They mostly range from 2.5% to 4% every month. Further, interest levied on credit cards is compounded regularly.  So, the longer your cash advance fee stands, the higher interest you'll have to pay. This is the main reason why it is recommended to not use a credit card cash withdrawal facility until and unless there is an emergency. And even if you do otherwise, make sure to repay your amount as soon as possible. 

Interest on Credit Card Cash Withdrawal for Top Card Issuers

Here are the interest charges levied on credit card cash withdrawal facilities by top banks in UAE:

Credit Card 

Interest Rate %

Mashreq Cashback Credit Card

3.33%

Citibank Cashback Credit Card

3.25%

HSBC Platinum Select Credit Card 

3.25%

Standard Chartered MasterCard Platinum Credit Card 

3.45%

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How to Withdraw Cash Using A Credit Card?

Withdrawing cash from a credit card is no different from doing so with a regular debit card. All you need to do is visit your nearest ATM and withdraw the desired amount of cash by swiping your card. Withdrawing cash from a credit card is the same as withdrawing cash from a debit card. You can visit your nearest ATM and withdraw the required cash anytime by swiping your card. Although credit cash withdrawal can be done at any ATM, different banks charge different amounts when you use different bank cards at different ATMs. 

Impact of Cash Advance on Credit Score

Generally, cash withdrawals on credit cards are not reported to credit agencies. Only the outstanding amount along with other dues is reported to them. Therefore, withdrawing cash using your credit card will not have a direct impact on your credit score. But here is a point to note - in case you fail to pay the amount due on your card within the required time frame, then your credit score will be impacted. So, as long as you keep a check on your outstanding amount and pay your bills on time, your credit score remains unaffected. Apply for the best credit cards with exciting benefits on Policybazaar.ae. 

Credit Card Cash Withdrawal FAQs

Difference between a credit card cash advance limit and a credit limit?

A credit limit is the maximum amount of money you can spend using your credit card. On the other hand, a cash limit is the maximum amount of cash you can withdraw using your credit card from an ATM.

Can I withdraw money from a credit card without charges?

No. It's not possible. Almost all credit cards come with a particular interest rate and cash advance fee, which you have to pay when you use the credit card cash withdrawal facility. 

Does withdrawing cash from a credit card affect your credit score?

Withdrawing cash from credit cards and not paying back within the stipulated time frame can surely hurt your credit score. Moreover, multiple cash withdrawal in a short period indicates poor money management.

Is the facility of cash withdrawal available on all credit cards?

No, the cash withdrawal option is available on limited credit cards. Check with your credit card provider for the same.

Do I have to get approval for withdrawing cash from my credit card?

No, you don't require any permission or approval from the bank for cash withdrawal, if your credit card has this option. You can directly withdraw the desired amount from any ATM or bank.

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