Credit cards are intended primarily for non-cash payments for goods and services. Therefore, the conditions for withdrawing cash, which are established by banks, cannot be called favorable.
Conditions for withdrawing cash from a credit card
Credit cards are classified as non-targeted lending. The only thing that the borrower's banks limit when using a credit card is in withdrawing cash. There are no direct prohibitions on these operations, but banks make them unprofitable in various ways. So, they often set penalties when receiving cash. For example, in Sberbank they are 3%, in Alfa-Bank - 5, 9%. Exceptions are rare. For example, Raiffeisenbank has a “Cash Card” that allows you to receive cash without commission up to 90% of the credit limit. If money is withdrawn from third-party ATMs, the fee will be even higher.
At the same time, such transactions are rarely included by banks in the grace period, and higher interest rates are imposed on cash withdrawals for the use of borrowed funds. Banks that include cash transactions falling under the interest-free period include Rosbank, Alfa-Bank, Promsvyazbank, Uralsib. Also, most banks have daily or monthly limits on cash withdrawals.
Cash withdrawal methods
In addition to extremely unfavorable lending conditions, withdrawing cash to a credit card is no different from a debit card. You can cash out money from a credit card through a bank branch, ATM, Internet bank.
In the first case, it will be necessary to present the passport and the card itself to the bank employee. You will also probably need to enter the PIN of the card. Please note that the amount of debt on the card will be higher than you will receive in your hands by the size of the commission. For example, when receiving cash 10,000 rubles. in Sberbank, at least 10,300 rubles must be returned to the card. When withdrawing cash on a card for which these operations are not included in the grace period, you need to take into account that from the next day they will begin to accrue interest for this operation.
You can use any ATM to withdraw cash. To do this, you need to insert the card into the ATM, enter the pin code and select the cash withdrawal option. The conditions for withdrawing cash will not differ in any way from receiving money through a bank specialist.
You can also use online transfer methods. For example, transfer money from card to card, or withdraw them to an electronic wallet (Yandex. Money, WebMoney or Qiwi). Such transactions are also equivalent to cash withdrawals and are accompanied by commissions that are standard for this transaction. If the issuer of the card to which the money is withdrawn is a third-party bank, then an additional transfer fee is charged.
In order not to pay commissions, you can borrow cash from friends and acquaintances, and pay for purchases with a credit card. Such purchases will fall into the grace period and will not overpay for the use of borrowed funds.
