You may have to pay these 3 types of charges for withdrawing cash from a credit card, know here..
Credit card cash withdrawal: If you don't have money in your account and you want to buy something, then a credit card helps a lot. You also get benefits like discounts and reward points. But some people also withdraw cash from credit cards. But if you are also thinking like this, then first understand its advantages and disadvantages. Because, on withdrawing cash, you may have to pay not one or two but three types of charges, which can be heavy on your budget.
You may have to pay a charge of up to 3%
You may have to pay a charge of 2.5% to 3% when withdrawing cash from a credit card. The interest-free period that is available on shopping is not available on withdrawing cash. Interest starts from the day of the transaction, which continues till repayment. Repeated withdrawal of cash can also spoil your CIBIL score.
The ATM maintenance fee is charged
Credit card users get 5 free ATM transactions every month, just like debit card users. After this, an ATM maintenance or interchange fee is charged, which does not include tax.
Heavy late fee up to 30%
If you do not pay the entire credit card bill, then a late payment fee of 15% to 30% can be charged on the remaining amount. This can also harm your credit score. Let us tell you that credit card users can withdraw up to 40% of their credit limit. This limit can also change according to the bank.
Does it also affect the credit score?
Withdrawing cash may not affect your credit score, but the charges can be heavy for you. If you do not pay the minimum due amount on time, then your credit score can be spoiled.
Let us tell you that most banks give reward points to credit card users.
These can be available in the form of discounts, gift vouchers, cash gifts, or air miles. If you use a credit card for shopping, dining, or traveling, reward points are accumulated, which you can redeem later.
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