Yes, you can withdraw cash from your FAB credit card, but it's important to be aware that this transaction, known as a cash advance, comes with specific fees and interest charges. It's generally considered an expensive way to access funds.
Understanding Cash Advances with FAB Credit Cards
A cash advance allows you to borrow cash directly from your credit card's available credit limit. Unlike regular purchases, which have an interest-free period if paid on time, cash advances typically accrue interest immediately from the date of the transaction. This means there's no grace period before interest charges begin.
Costs Associated with FAB Credit Card Cash Withdrawals
When you withdraw cash using your FAB credit card, you will incur two primary types of charges: a cash advance fee and an interest rate. These costs can add up quickly, making cash advances a costly financial option.
Here’s a breakdown of the typical charges:
| Charge Type | Details |
|---|---|
| Cash Advance Fee | 3.15% of the withdrawn amount or AED 150, whichever is higher. |
| Interest Rate | 3.50% on the cash withdrawal transaction. |
It's important to note that these specific charges can vary based on the type of FAB credit card you hold and your individual customer agreement. Always refer to your card's terms and conditions or contact FAB directly for the exact rates applicable to your card.
Important Considerations Before Withdrawing Cash
Before opting for a cash advance, consider these factors:
- Immediate Interest Accrual: Interest starts accumulating the moment you withdraw the cash, unlike purchases where you might have an interest-free period if you pay your bill in full by the due date.
- Higher Costs: The combination of an upfront fee and a relatively high interest rate makes cash advances significantly more expensive than regular credit card purchases or personal loans.
- Lower Cash Advance Limit: Your cash advance limit is often a smaller portion of your overall credit limit.
- Impact on Credit Utilization: A cash advance increases your credit utilization ratio, which can negatively affect your credit score. Lenders typically view a high utilization ratio (using a large percentage of your available credit) as a sign of higher risk.
- Alternatives: Explore other options first, such as using a debit card, a personal loan with lower interest, or an emergency fund, if available.
How to Access Cash
Cash advances can typically be made at ATMs displaying the logo of your credit card network (e.g., Visa, Mastercard). You will need your credit card and PIN to complete the transaction.
While possible, withdrawing cash from your FAB credit card should be considered a last resort due to the associated high costs. Understanding the fees and interest rates involved can help you make informed financial decisions and avoid unnecessary expenses.
