Credit Card Rules People are very attracted to the offers available on credit cards. You get benefits like cashback and reward points when you make payment through credit card. Along with reward points, users get the facility of cash withdrawal on credit card. However, one should avoid using this facility. In this article, we know why you should not withdraw cash through credit card?
There has been a steady increase in the number of credit card users in the country. Users like the interest-free payment, reward points, cashback and other offers available on credit cards. Now, along with shopping bill payment, you can also use credit card for cash withdrawal from ATM.
Many people have a question in their mind whether it is right to withdraw cash from credit card. Today we will tell you the correct answer to this.
How much cash can you withdraw
You can withdraw cash only according to the credit card limit. The cash withdrawal limit is different for every user. Many banks allow cash withdrawal of only 20 to 40 percent of the credit card limit. This also depends on the limit of the card.
How beneficial is cash withdrawal
Although cash withdrawal is not beneficial at all, but one advantage of this is that you can withdraw money in an emergency. Apart from this, there is no other benefit of this facility. The reason for this is that on withdrawing cash, you have to pay interest and you also do not get any reward points.
Withdrawing cash from a credit card is a move that should be avoided as much as possible. This is because there are a number of problems and high costs associated with withdrawing cash from a credit card. First of all, when you withdraw cash from a credit card, you have to pay a cash advance fee right away, which is usually between 2% to 4%. This fee depends on the amount of cash you withdraw and you have to pay it right away.
