• Get Cash Advance from Credit Card

    There are times that you find yourself in situations where you have to make a payment, but the place doesn’t accept credit cards. What do you do if you don’t have money in your account to cover the expenses? You can avail the cash advance facility from your credit card.

    Features of Cash Advance from Credit Card

    The following are the features of cash advance from Credit Card:

    • There is no need for you to have cash available in your bank account.
    • It is a short term loan that you can take against your credit card.
    • The loan is availed in cash.
    • You need not go to the bank to get the loan sanctioned, you just have to go to a Visa ATM and you will get the amount instantly.
    • You must know that the company will allow a certain percentage of your credit limit as cash advance.

    Pre-checks before taking Cash Advance

    Prepare to get cash advance by following the pre-checks:

    • Account status checks: Check your statement online and ensure that you haven’t missed any payment or have reached your borrowing limit.
    • Check if you have permission from the bank: You Credit Card Company needs to authorise you to withdraw cash using your Credit Card from an ATM.
    • Check if you have the right PIN number: Before you attempt to withdraw cash from your Credit Card, ensure you are using the correct PIN.
    • Change PIN if you have forgotten your original PIN: You can call the customer care and reset your PIN.

    Understand the fees and terms and conditions

    Though taking a Cash Advance seems like an easy way to arrange for cash during an emergency, you must also make yourself aware of the terms and conditions and the fees that will be charged on your withdrawal. Most often the Credit Card Companies set a withdrawal limit. You must make yourself aware of the following:

    • You must know your withdrawal limit.
    • You must be aware of the fees that will be charged for the transaction. Read through your account agreement to know how much percentage of the amount withdrawn is charged as Cash Advance Withdrawal fee.
    • You must also find out what is the interest rate that you will have to pay on your Cash Advance. The Credit Card Companies charge a different interest for Cash Advances and for payments made using the card. Check how often the interest accrues on the Cash Advances.
    • You must be aware of the repayment system. Ask if you next payment will go towards paying off your high interest balances in your account. If the higher interest balances aren’t cleared out at the next payment, specifically ask for them to be cleared. Otherwise you will end up with a debt higher than the amount you took as advance.

    Top 5 banks offering Cash Advances on their Credit Cards in UAE

    The following are the top 5 banks offering Cash Advance on their Credit Cards in UAE:

    Emirates NBD:

    Emirates NBD Credit Cards allow Cash Advances. The Cash Advance limit is 50% of the credit limit. The Cash Advance fee is 3% of the amount withdrawn or AED75, whichever is higher.

    RAKBANK:

    The Cash Advance limit allowed by RAKBANK is 80% of the credit limit. The Cash Advance fee is 3% of the amount withdrawn or AED50, whichever is higher.

    FGB:

    The Cash Advance limit allowed by FGB is 80% of the credit limit. The Cash Advance fee is 3% of the amount withdrawn or AED100, whichever is higher. The finance charges calculated on daily balance from transaction date till repayment date for Cash Advances is 3.5% per month.

    ADCB:

    The Cash Advance fee is 3% of the amount withdrawn or AED50, whichever is higher. The finance charges calculated on daily balance from transaction date till repayment date for Cash Advances is 3% per month. There won’t be any finance charges applicable if the Cash Advance amount is paid in full before the due date.

    NBAD:

    The Cash Advance limit allowed by NBAD is 60% of the credit limit. The Cash Advance fee is 3% of the amount withdrawn or AED100, whichever is higher. The Cash Advance interest rate is 3.09% per month.

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