A cash advance is one of the best features for which people prefer credit cards over debit cards. This feature allows you to withdraw the amount with the help of your credit card. There are places where you might not be able to swipe your credit or debit card, here the cash advance feature is a brilliant option.
Along with other credit cards, SBI credit cards also have the Cash Advance feature. Although the prime feature of a credit card is to do cashless transactions, cash withdrawal is something that can help you get through unpredictable situations. You never know when you will need cash. SBI credit card users can visit any ATM and take advantage of this feature for their personal needs. Since it gives you instant cash, it prevents the waiting time for personal loans or any other kind of loan. But there are certain things that you need to remember which are –
- The cash limit and credit limit are two different things. A credit limit is the actual limit of your credit card, however, a cash limit is a percentage of that credit limit that can be withdrawn and is allotted to you by the bank.
- The charges for cash advance are usually higher than that of your credit limit which includes the financial charges and cash advance fee.
- You will be charged for the cash withdrawal on a daily basis until you repay the transacted amount.
You can use a percentage of your credit limit in this cash advance feature. Typically, the range is 20% to 40% of the overall credit limit, but it depends on the bank as to what is your range. This cash advance range can be different from person to person which is conveyed by the bank to the cardholder at the time of the card issuance.
Cash advance comes in handy when you are unable to make payments through your cards. however, this feature is recommended to use only in emergency scenarios. That is so because it has a lot of financial charges and fees advocated with this feature and these keep on adding up on your bill until you pay the whole amount in full.
The cash advance feature is a pretty good and useful feature overall. It can be used in emergencies, but you will have to be wise while using this feature due to the charges related to it. The cash advance is rather better than waiting for loans to get sanctioned and is quick cash.