New Delhi, Business Desk. Withdrawing money from an ATM through a credit card may seem convenient at times. Neither bank approval nor any document is required for withdrawal of money from ATMs. But for this facility you have to pay a huge cost.
Withdrawing money from ATMs through credit cards, both the interest and fees are very high. Apart from this, if the card holder fails to pay the minimum due amount, then his credit score gets badly affected. We are telling you in this news why cash should not be withdrawn from ATMs through credit cards.
Advance Fees : This fee will be charged every time you withdraw from a credit card. This fee can range from 2.5 percent to 3 percent, depending on the withdrawal amount. This charge is reflected in your next month’s bill, the installment you have to pay.
Finance Charge : Its payment is made on withdrawal amount, its rate is also like advance fee. This charge lasts from the date of withdrawal until the full payment is made.
With the help of Intrest Rate: Credit Card, you may have to pay a maximum of 4 percent monthly interest (48 percent annually) on cash withdrawal from ATMs. This can also vary depending on the bank. It is for the period from the date of transaction to its payment. Therefore it is quite expensive. Also, there is no reward point.
Credit Score : Withdrawing money from credit card ATMs has a negative effect on your credit score, as it explains the bad financial condition of the card holder.
