You may need extra cash than in account, in pocket or at home any time for different reasons. There is nothing new to depend upon credit cards and debit cards. Although borrowing from direct lenders is also an alternative to meet out emergency cash needs but withdrawing cash directly from credit card or debit card is more commonly followed option. As the tendency of using debit card and debit card is increasing fast, the agencies are issuing the wider variety of cards with cash advance facility up to a certain limit.
Debit card allows using only the funds available in saving account; and the user can’t withdraw more than the deposited funds. Some debit cards allow withdrawing the cash up to a certain limit as the privilege. The withdrawn cash needs to be pay back in a certain period that is different in case of different debit cards. Leading credit card agencies offer interest free period also during which user doesn’t need to pay any cost for using the money. The cash advance limit is specified on credit card; it is mentioned on credit card statement also. The user can withdraw the cash up to 90% of balance cash limit through any ATM. Enjoy this interest free credit facility.
Now, if you are withdrawing cash under the limit and you pay it back within specified interest free period, you pay nothing but if you fail to repay back the entire amount within interest free period, you pay the cost that may be up 24% APR or more. Therefore, use this facility strategically with financial discipline.
The following hacks may also help you use interest free cash to meet out short-term financial needs with using or not using available credit card:
Accompany Your Friend for Shopping:
Your friend or relative may not lend you £ 500 or so but he can allow you pay his shopping bills with your credit card. The paid money can be returned in cash immediately. Ethically, if the shopping made carries some cash back scheme, the credit should go to shopper’s (friend) account. So, you get interest free cash for three to seven weeks.
Overdraft is the convenient and affordable way to get required cash help from the trusted source; almost all the leading banks offer this facility to account holders. This facility is interest free for a certain period but in case of failure, you will have to pay the fees. These fees are FCA regulated. Using the overdraft facility is a good alternative to credit card cash withdrawing because the interest rate and fees are comparatively low. It is quite easy to avail. The anytime cash facility is made available on the basis of your reputation in bank and account status; however, it is not necessary to have the required funds in account. Overdraft facility is offered to bridge the gap between the available fund and total requirement.
Use Electronic Wallet:
Almost every Smartphone user is using one or more electronic wallets like ApplePay, Google Wallet, Paytm etc. These electronic wallets allow keeping the funds stored and use the funds whenever and wherever you need. Almost all the outlets accept the payments from these wallets. The best advantage is that some electronic wallets offer cash back or redeem points also on using the available cash; the redeem points can also be converted in the cash. The received cash back reduces the need of withdrawing cash through debit card.
Just search the drawers of your office table or home; you will certainly find some gift cards that you are not going use in the near future up to the expiry date but your friend or relative may need that card to get cost cut privilege. Exchange the gift card and receive the cash immediately that you don’t need to repay back even. The friend or relative using your gift card will also be happy because of getting extra discount.
Apply For A New Credit Card:
Using numbers of debit cards may go against you because it harms your credit score but holding 2- 3 debit cards is OK. If you use the interest free period for using cash of all the 2-3 debit cards, you can save considerably on paying the cash withdrawing cost of debit card. Santander Everyday Credit Card offers 3 months interest free period on purchases made. You can offer a friend to shop with your credit card and pay you the cash. Similarly, American Express Platinum Cashback Everyday Card offers 5% cash back facility as the bonus for 1st three months period. Tesco Bank Foundation Credit Card is also a good option to use interest free cash for few days. You can transfer money from your credit card to bank account also.
Sell the Rewards Points:
The numbers of credit cards offer rewards points on usage. These reward points can be credited to your friends’ or relatives’ account or can be used to make their shopping cheaper; in return you get the cash. It is a win-win condition for you and your friend; the friend gets discounts and you get interest free cash.
You Are Not Only The One Relying On Credit Card Cash Facility:
Cash withdrawing from credit card at no cost seems a good facility but just think- why the agencies are allowing you use the cash at 0% interest for 2 to 3 months. UK households owe an average of £15,385 to banks, direct lenders and credit card issuing firms. The total credit card transactions reached 924 million figure in 2017; the total spending was estimated around £50.7 billion. There exist almost 32.3 million credit card holders in the UK. Brits spend more through credit card rather than using debit card; it is just because they are aware of getting interest free period. Some credit card issuing agencies charge issuing or handling fee at time of issuing the card while some offer the his facility free of cost. Therefore, while applying for a new credit card, compare all the options with focus on cash withdrawing facility, limits, interest free period, late payment fee etc.
If you already have 3-4 credit cards that you are not using because of high cost, don’t keep these ideal. Pay the dues and close the account. To get the no cost cash withdrawing facility, apply for the new credit card that is normally issued within one week.