Emergencies can arise anywhere, anytime; they don’t come with a warning. Hence, having a source for instant cash withdrawal can be a great relief. Many of you own a credit card. It can help with instant credit, but can you withdraw cash using your credit card? Yes, just like a debit card, your credit card can be used to withdraw money in need. However, this convenience comes at a cost. Let us understand the nitty-gritty of these withdrawals.

Things to Consider When Withdrawing Cash Using Credit Cards

Credit card cash withdrawals—also known as cash advances—aren’t the same as regular ATM withdrawals from your bank account. Here are a few key aspects you should be aware of:

Cash Limit

The limit on your credit card is offered for spending. Hence, the entire credit limit amount will not be available to withdraw cash from a credit card. The cash limit is usually 20% to 40% of your credit limit, depending on the bank. Hence, aim for a higher credit limit to be able to withdraw more cash as an emergency fund.

Also Read: How to Improve Your Credit Card Limit?

Fees & Charges

The cash withdrawal option on even the best credit cards should be your last resort as there are many charges involved, which you must be aware of before you apply for credit card:

1. Cash Advance Fees: Credit cards provide credit for spending. When cash is advanced, a fee must be paid, generally 2.5% to 3% of the transaction amount, with a minimum of ₹250 to ₹500. Induslnd Bank Samman Rupay Credit Card for Government officers offers Zero Cash Advance fee.
   
2. Finance Charges: Like other transactions, cash withdrawals are also subject to finance charges on the outstanding amount from the day of the transaction until repayment.
   
3. ATM Fee: Withdrawing cash from the ATM also attracts fees for more than five monthly transactions.  
   
4. Late Fees: If you cannot pay the amount withdrawn by the due date, you must bear the late fees, ranging from 15% to 30%. This is similar to purchases and other spending.

Interest

Regular credit card usage attracts interest from the due date until the outstanding is paid, so the holder gets a grace period. However, in case of withdrawal of cash from credit card, interest is charged from the time of withdrawal to clearance. So, from the day of the transaction until the day of payment, a monthly rate of 2.5% to 3.5% is charged on the transaction amount.

Credit Score

Withdrawing cash does not impact your credit score. However, the charges accompanying the withdrawal can add to the already existing cash crunch, driving you towards a debt trap. So be mindful of exercising this option and clearing dues as soon as possible.

Rewards

Credit card issuers entice holders with many benefits, such as cashback, rewards, air miles, waivers, etc. These could be for shopping, dining, travel, and so on. If used correctly, these rewards can be beneficial. IndusInd Bank understands that utilising all reward points before expiry gets stressful and hence offers lifetime rewards. However, no reward points are awarded when you withdraw cash from the credit card. Hence, using the cash withdrawal option only when in absolute need is wise, even for the best credit cards.

Steps to Withdrawing Cash Using a Credit Card

Withdrawing cash from your credit card is straightforward. Here’s how to do it:

1. Locate an ATM: Find a bank ATM that accepts your card network (Visa, Mastercard, RuPay, etc.). You can also use your issuing bank’s ATM.
2. Insert Your Credit Card: Just like a debit card, insert your credit card into the ATM.
3. Enter Your PIN: Use the 4-digit PIN assigned to your credit card.
4. Select ‘Cash Withdrawal’ Option: Choose the withdrawal option on the screen.
5. Enter Amount: Type in the amount you wish to withdraw (within your cash limit).
6. Confirm and Collect Cash: Once approved, collect the cash along with your receipt. Keep an eye on any immediate SMS alerts about the charges applied.

Summing Up

Credit card cash withdrawals can be a helpful financial backup during urgent situations, but they come with high costs. The absence of an interest-free period and the addition of advance fees make it important to use this feature cautiously. If you must withdraw cash using your credit card, repay the amount as soon as possible to minimise interest and protect your credit score. Always know your card’s terms—and use the feature only when truly necessary.

Credit cards have increasingly become an integral part of the lives of many people while making payments. Right from small purchases such as groceries to big-ticket purchases such as white goods and automobiles, more and more people are using credit cards. But who came up with the idea of the credit card in the first place? How did the credit card evolve from the time it was invented to its current avatar? 

Credit Card History – A Fascinating Journey

The origin of credit cards lies in the invention of the system of credit, which extended as far back as the 1700s. Credit coins and charge plates were invented, which the farmers could use with certain merchants. Then this form of credit evolved and began to be seen in departmental stores and hotels, which used their own system of credit.

The First Bank Card: Charg-It

In credit card history, the first entry of cards in banking was in 1946 when John Biggins, a banker in Brooklyn, conceptualised the Charg-It card. He aimed to increase the bank’s customer base, and customers with an account with the bank were given cards that could be used at select merchant outlets. The merchants would send the receipts to the bank, the bank would make the payment for purchases made and then forward a bill to the customer. The customer was subsequently expected to pay the bank.

The First Modern Credit Card: The Diner’s Club Card

Frank McNamara invented the first modern credit card in 1950. He was dining at a New York restaurant and realised he had forgotten his wallet when it was time to pay the bill. An embarrassing situation to find oneself in, he would soon introduce the Diner’s Club card, which could be used in restaurants without having to carry cash. Soon, however, the usage of this card was expanded beyond restaurants by including other retail outlets. This was a charge card where the bank would bill the customers who were expected to repay at the end of the month. The Diner’s Club Card gained prominence quite quickly. From its invention in 1950, it soon gained pace in major US cities and by 1953 began to be accepted in Cuba, Mexico, the UK, and Canada.

The Evolution of Credit Cards

Credit cards soon began gaining traction to the point that most banks began issuing credit cards. The payment structure also evolved in the sense that while customers were billed every month and were expected to pay within a certain date, they could now roll over this credit from month to month. Visa, Mastercard, American Express, and Discover emerged as some of the most prominent credit card issuers in the 20^th century.

Credit Card Advancements

The credit card industry has transformed quite a bit since then in the following ways:

Credit Reporting and Scoring: A credit score is a measure of the cardholder’s creditworthiness. The FICO Score, which became the industry standard, was first introduced in 1989.

Industrial Regulations: With the Equal Credit Opportunity Act coming into force, credit card companies were prohibited from discriminating based on race or gender. Other laws were also passed that enabled customers to dispute unauthorised charges on their cards.

Magnetic Strips: To enhance the security of the cards and eliminate the possibility of fraud, magnetic strips on cards were introduced in 1969 by IBM as a method of processing credit card information.

One-time Code: To add an extra layer of security, the magnetic chip on the cards began generating one-time codes when a transaction was in process. CVV codes were also introduced to boost the security of the card during payment.

While CVV is the same printed 3-digit number on the back of every card, a One-Time Password (popularly known as OTP) is a one-time use, limited-validity code. The banking server usually sends it to the registered mobile number and email address when completing an online transaction, which needs to be entered correctly on the payment platform to complete the payment.

Credit Card Invention in a Nutshell

There have been considerable innovations in the credit card industry ever since the first credit card was issued. With the rise in competition and evolution in technology, customers are now spoilt for choice when selecting credit cards. Looking to apply for a Lifetime Free Credit Card. Apply with IndusInd Bank in 3 easy steps and get plethora of benefits. Click here to apply.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

When you hear ‘lifetime free credit card’, most people think there must be several hidden charges the bank will impose later. This assumption is not always correct, as securing a credit card with no annual fee is now a reality in India. Yes, the prospect of a lifetime free credit card can be enticing, especially, when coupled with zero recurring charges. Here’s how you can obtain a credit card  in India without any annual or joining fees.

What are Lifetime Free Credit Cards?

Let’s understand what a lifetime free credit card entails. Unlike traditional credit cards that levy annual fees for card usage, free lifetime credit cards waive these charges. This means one can enjoy the benefits of a credit card without incurring any annual fees, making it an attractive option for many.

Researching Available Options

The Indian financial market boasts several banks and financial institutions offering credit cards for free,with no annual fees. Conducting thorough research to compare available options is crucial before filling out your free credit card application. Look for features, benefits, and terms associated with different credit cards to identify the most suitable one for your financial needs.

Also Read: Which Are The Best Lifetime Free Credit Cards From IndusInd Bank

Meeting Eligibility Criteria

To qualify for a lifetime free credit card in India, applicants must meet specific eligibility criteria set forth by the issuing bank or financial institution. These criteria typically include minimum income requirements, age restrictions, and credit history assessments. Please read more on how to apply for lifetime free credit cards.

Maintaining a Healthy Credit Score

A healthy credit score plays a pivotal role in securing a lifetime free credit card with no annual charges in India. Lenders assess credit scores to evaluate an individual’s creditworthiness and financial reliability. Maintaining a good credit score by making timely bill payments, managing debts responsibly, and keeping credit utilisation low increases your eligibility for favourable lifetime free credit card  offers.

Applying for the Right Credit Card

Once you’ve identified a suitable lifetime free credit card option and ensured that you meet the eligibility criteria, you can initiate the application process. Most banks and financial institutions in India offer online application facilities, thereby streamlining the process for applicants.

Utilising the Credit Card Responsibly

Upon receiving approval for your lifetime free credit card, it’s essential to use it responsibly to maximise its benefits while minimising financial risks. Avoid overspending and adhere to prudent financial practices such as paying bills on time, maintaining a low credit utilisation ratio, and monitoring your credit card statements regularly for any discrepancies.

Leveraging Rewards and Benefits

Lifetime free credit cards in India often come with an array of rewards, offers, and benefits. Capitalise on these perks by leveraging your credit card usage to earn rewards points, avail cashback on transactions, and access exclusive discounts and privileges offered by partner merchants and establishments.

Also Read: What Is A Lifetime Free Credit Card? How Can I Get One Instantly?

Regularly Reviewing Terms and Conditions

Stay informed about the terms and conditions associated with your lifetime free credit card to ensure compliance and avoid any unforeseen charges or penalties. Familiarise yourself with the card’s billing cycle, interest rates and late-payment charges.

Conclusion:

Securing a lifetime free credit card with no annual fee in India presents a viable opportunity for individuals seeking convenient financial solutions without the burden of recurring charges. Enjoy the benefits of a lifetime free credit card while optimising your financial management practices. If you want a lifetime free credit card, explore theoptions offered by the IndusInd Bank now, and apply today!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

Travel credit cards offer loads of benefits for Indian users, both at home and abroad, making them an indispensable tool for savvy travellers. These cards come packed with perks designed to enhance your travel experience and save you money along the way. IndusInd Bank offers some of the best travel credit cards in India as we’ll see further in the article.

What are the Top 5 Benefits of a Travel Credit Card? Find Out Below:

1. Rewards and Points: Earn points whenever you spend and redeem these in exchange for flight offers and hotel stays
   
2. Airport Lounge Access: Relax in airport lounges with complimentary access
   
3.  Reduced/ No Foreign Transaction Fees: Avoid extra charges when using your card abroad
   
4. Travel Insurance Coverage: Benefit from travel insurance, including coverage for trip cancellations, lost luggage, and emergency medical expenses.
   
5. Exclusive Travel Perks: Access special privileges such as priority boarding, free checked bags, flight seat upgrades, and hotel room upgrades.

Also Read: What are Credit Card EMIs & How They Work

Top Four Ways to Find the Right Travel Credit Card:

1. Assess Your Travel Habits: Consider your travel frequency, destinations, and preferences to determine which card benefits align best with your needs.

2. Compare Features and Fees: Compare the features, annual fees, interest rates, and additional perks offered by different travel credit cards.

3. Read Reviews and Research: Take the time to read reviews from other users and research online to better understand the worth of various travel credit cards.

4. Check Acceptance and Accessibility: Ensure the card is widely accepted at your preferred travel destinations and offers e-banking and customer support for ease of use.Dos and Don’ts of Travel Credit Cards:

Dos:

• Do Pay Your Balance in Full: Avoid accruing high-interest charges by paying off your balance in full and on time each month.
  
• Do Maximize Your Rewards: Take advantage of rewards and benefits offered by your card, such as miles, points, and discounts, to maximize savings on your travel expenses.
  
• Do Monitor Your Account: Regularly review your statements and transactions to detect any unauthorized or fraudulent activity promptly.

Don’ts:

• Don’t Overspend: Avoid overspending beyond your means just to earn rewards, as it can lead to debt accumulation and financial stress.
  
• Don’t Ignore Fees and Charges: Be mindful of annual charges, forex markups, and other fees associated with your card to prevent unexpected expenses.
  
• Don’t Forget to Redeem Rewards: Don’t let your rewards go to waste by forgetting to redeem them before they expire. Keep track of your rewards and use them wisely to enjoy their full benefits.

Also Read: How To Use Indusind Bank Credit Cards To Maximize Travel Savings?

How to Apply for a Credit Card Online in India:

1. Choose a Card
2. Visit the Issuer’s Website
3. Fill Out the Application Form
4. Upload Required Documents
5. Submit the Application

Top Five Credit Card Eligibility Factors in India:

Income Level: Banks often require a minimum income level

Credit Score: A good credit score makes a credit card more achievable

Employment Status: Stable employment is looked for

Age: Generally, applicants are required to be 21 years old or above

Residency Status: Applicants must be Indian residents

Documentation Requirements to Apply for a Credit Card Online in India:

·         Proof of Identity: Aadhaar card, passport, driving license, or any other valid government-issued photo ID.

·         Proof of Address: Documents that verify your residential address, such as utility bills, bank statements, or rental agreements.

·         Income Proof: Documents such as salary slips, income tax returns, or bank statements that validate your income level.

·        Additional Documents: Such as PAN card, Form 16, or employment proof.

On the other hand, new age banks like IndusInd Bank offer complete digital application process with no physical documentation.

Travel credit cards offer unmatched benefits like lounge access, rewards on spending, and travel insurance. Start your adventure today! Explore our best travel credit card –  IndusInd Bank Avios Visa Infinite Credit Card here.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

As the tax season approaches, individuals seek effective strategies to minimize their tax liabilities and maximize savings. While traditional tax-saving instruments like investments and deductions are well-known, leveraging credit cards can be a powerful yet often overlooked strategy. In this blog, we’ll explore how you can optimize your finances and maximize tax savings by utilizing credit cards, with a focus on the benefits offered by IndusInd Bank Credit Cards.

Tax-Saving Strategies with Credit Cards

1. Making payments for your expenses: Many credit cards offer rewards or cashback on specific categories such as fuel, groceries, or utility bills. By strategically using your credit card for expenses that qualify for tax deductions, such as business expenses or charitable donations, you can earn rewards while reducing your taxable income.
   
2. Availing EMI Options for Tax-Deductible Purchases: Certain credit cards provide EMI options for high-value purchases, such as electronic gadgets or home appliances. By opting for EMIs, you can spread the cost over time while potentially claiming tax deductions on eligible items, such as business equipment or home / office furniture.
    
3. Paying Insurance Premiums: Premiums paid towards health insurance, life insurance, or other eligible insurance policies are often eligible for tax deductions under Section 80C of the Income Tax Act. Using your credit card to pay these premiums not only earns you rewards but also helps you maximize your tax savings.
   
4. Contributing to Retirement Accounts: Some credit cards offer rewards on transactions related to investment products, including retirement accounts such as the National Pension System (NPS) or Employee Provident Fund (EPF). By using your credit card for contributions to these accounts, you can earn rewards while saving for retirement and potentially qualifying for tax deductions.

Benefits of IndusInd Bank Credit Cards for Tax Savings

1. Reward Points on Tax-Deductible Expenses: IndusInd Bank Credit Cards offer reward points for various categories, including fuel, groceries, and utility bills, which are often eligible for tax deductions for official purpose. By using your IndusInd Bank credit card for these expenses, you can earn rewards while reducing your taxable income.
   
2. EMI Options for High-Value Purchases: IndusInd Bank Credit Cards provide flexible EMI options for large transactions, allowing you to spread the cost over time while potentially claiming tax deductions on eligible purchases. This feature is particularly beneficial for investments in business equipment or home office furniture.
    
3. Complimentary Insurance Coverage: Some premium IndusInd Bank Credit Cards offer complimentary insurance coverage, including air accident coverage and travel insurance. By using your credit card to pay for other insurance premiums, you not only earn rewards but also ensure financial protection for yourself and your family, while potentially qualifying for tax deductions.
   
4. Dedicated Customer Support: IndusInd Bank provides dedicated customer support to assist cardholders with tax-related queries or concerns, ensuring a seamless experience when leveraging credit cards for tax savings.

Conclusion

Leveraging credit cards can be a smart strategy to optimize your finances and maximize tax savings. By strategically using your IndusInd Bank credit card for tax-deductible expenses, availing EMI options for eligible purchases, and taking advantage of complimentary insurance coverage, you can earn rewards while reducing your taxable income. With IndusInd Bank Credit Cards, you not only enjoy the convenience of cashless transactions but also benefit from attractive rewards, flexible EMI options, and dedicated customer support, making them an ideal choice for tax-conscious individuals looking to optimize their financial planning.

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Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.