HSBC Credit Card Cash Withdrawal

HSBC is named among the top financial institutions in the world. It offers all kinds of financial services including personal loans, commercial loans, foreign exchange services, credit cards, and so on. Note that all credit cards issued by HSBC Bank come with a cash advance option, also known as a credit cash withdrawal option. This feature allows the cardholders to withdraw cash up to the available limit from any ATM or bank.  

HSBC Bank Credit Card Cash Withdrawal Limit and Charges Levied 

Every HSBC credit card comes with a cash advance limit. Note that, this cash advance limit is different for different cardholders and is assigned based on multiple factors. In general, HSBC Bank offers 40% of the total credit limit as the cash withdrawal limit. However, this can vary from one customer to another. The credit card holders are notified about their withdrawal limit through the monthly credit card statement. Moreover, HSBC allows customers to change their cash as well as credit limit without requiring any intimation beforehand. 

You can check your assigned cash limit by either checking your monthly card statement or contacting HSBC Bank. 

Cash advance fee HSBC or cash withdrawal fee is a charge applied by HSBC Bank every time you use the credit card withdrawal facility. This fee is levied on the total amount you withdraw. In other terms, the cash advance fee is a small percentage of the total amount taken by you using the credit card facility. As of now, HSBC Bank levies 2.5% as the cash withdrawal charge. It is subjected to a minimum of AED 100. Moreover, this charge can be modified or changed at any time by HSBC Bank when needed. 

The day you withdraw money using the HSBC credit card option, you will incur certain financial charges from the same day until the day the withdrawn amount is settled. Here, the finance charge is the rate of interest levied on the withdrawn amount. This is the main reason why it is recommended to clear your credit card bills as soon as possible. Also, the interest rates or finance charges vary from one customer to another. So, check with the bank for more information. 

As of now, HSBC Bank offers an interest of 3.3% every month and 39.6% every year on all cash withdrawals done using HSBC credit cards.

Advantages and Disadvantages of HSBC Bank Credit Card Cash Withdrawal Facility

Because credit card cash withdrawal facility comes with higher charges including interest charges and advance fees, it is advised to use it only in the case of a financial emergency. Moreover, the credit card cash withdrawal option comes with many advantages as well as disadvantages. So, before you swipe your card at the nearest ATM, make sure to take a look at those. 

Advantages of HSBC Bank credit card cash withdrawal option 

• It allows credit card holders to get cash immediately when needed. 
• No approval or prior permission is required for withdrawing cash using HSBC credit cards. 
• Withdraw 24*7 from the nearest ATM. 
• Works on international ATMs. 

Disadvantages Of HSBC Bank credit card cash withdrawal option 

• Cash advance fees are high
• High financial charges are applied from the day you withdraw money until it is repaid. 
• An interest-free period is not available for cash withdrawal using credit cards in UAE 
• Overusing this option may impact your credit Score and push you into debt traps 
• Higher interest rates as compared to others. 

How To Withdraw Money Using An HSBC Bank Credit Card?

The process of taking out cash using an HSBC credit card is simple. All you need to do is follow the simple steps mentioned below:

• Visit your nearest HSBC or any other ATM
• Swipe your HSBC credit card in the given slot 
• Enter your credit card PIN
• Select the language 
• Select the “Cash Withdrawal” option 
• Enter the desired amount you want to take out 
• The cash will be dispensed

Using your credit card to withdraw cash is a convenient option but ensure that you are well aware of the withdrawal charges.