4 tips to get cash from your credit card

It's ideal to have your travel funds ready in your savings account so when the cheap holiday flights and hotel packages are available, you can just grab your cash and go. But when the time comes, not everyone is well prepared. To save you from needing to acquire extra cash, credit cards can come in handy. With so many products out there, do you know what to look for when cashing out your card? Here are a few tips for getting those extra bucks for your vacation.

Many people think cash advances and credit card overdrafts are the same. Both let you take cash from your credit limit, and you usually don't need to provide supporting documents. But if you withdraw cash from an ATM with your credit card, you may pay interest of up to 40% a year, charged daily, and a handling fee of about 5%.

On the other hand, a cash-out plan gives you the same flexibility at a lower interest rate. The money is usually sent to your chosen account in 3 days, which may be just in time for your quick getaway.

Some cash out plans only highlight the lowest monthly handling fee, monthly flat rate or APR, but that is not the actual cost of lending. The actual interest rate depends on many factors including your credit ratings, cash out amount and repayment period. Ask your bank before you get cash from your card.

First, it's the actual cash out limit of your card. As it's calculated based on your repayment capacity, it could be much lower than your credit limit. So don't overestimate how much you can borrow!

The second is the available credit limit after cash withdrawal. Your available credit limit will decrease as part of it has been turned into cash. While it may affect your every day spending with the credit card, the available credit limit will increase again after your repayment and you won't have to worry about going hungry!

In general, you can't earn points for cashing out your card, so make sure you don't miss out on the promotions. HSBC Cash Instalment Plan gives you different limited time, exclusive offers. Go on our website now to check our latest offers. Cash Instalment Plan also allows you to repay a fixed amount with a personalised monthly handling fee for 6-60 months - perfect for travellers who prefer more stability. Calculate your monthly repayment and daily average handling fee with our repayment calculator for Cash Instalment Plan.

You can apply in the HSBC HK App, and the funds will go straight into your chosen account. Or, call our 24/7 application hotline on (852) 2233 3051.

Find out more about the HSBC Cash Instalment Plan and how to apply.

To borrow or not to borrow? Borrow only if you can repay!