Credit cards are not only used for credit purchases. Do you know that they can be used to encash? We do get into emergency situations where credit card money can be converted into cash. These are the two options to convert it.
Option 1 – Withdraw cash from ATM
By withdrawal of cash in ATM using your credit card which will attract 2.5 – 3.5% interest or flat Rs.300 – 500, whichever is higher on the withdrawal amount.
Option 2 – Using Mobile Wallets
Follow the below simple process to borrow cash for free of cost using credit card via mobile wallets.
- By using credit card, Add money to any of the mobile wallets like Paytm, Mobikwik, Freecharge.
- Transfer back the cash to the required account by specifying the bank details, by which you can avoid the charges for converting credit card money to cash.
Mobile wallets came to know that users are using this option to avail free credit and they are taking necessary steps to block these transactions.
Beware that banks will have to report the user details who are spending 2 lakhs or more annually on their credit card.
Below is an illustration of the charges for every Rs. 10000 borrowed:
|Withdraw cash from ATM||Rs. 250 – 350|
|Using Mobile Wallets||Nil|