Credit Card Cash Withdrawal: After taking a credit card, people ignore some small things. Because of which they have to suffer a lot. In such a situation, some things should be kept in mind while using a credit card, otherwise the bank can charge you thousands of rupees due to a small mistake.
People are shopping a lot in the festive season (Credit Card Offer). The most special feature of the credit card is the facility of cash advance. However, nowadays due to Online Shopping Credit Card Offer, people do not need to withdraw much cash.
But still many people are using their credit cards to withdraw cash from ATMs. This is because people are spending more in the circle of offers. In such a situation, is it the right step for people to withdraw money from their credit cards? According to experts, doing this is right or wrong. Can this cause you a big loss in future?
Avoid Cash Withdrawals
According to experts, withdrawing money from credit cards at ATMs should be avoided. This is because the bank levies a lot of interest and charges on cash withdrawal. Apart from this, if the credit card holder does not pay the minimum amount, then his CIBIL score is also affected. Withdrawal from credit card attracts a cash withdrawal charge of 2.5 per cent to 3 per cent. Apart from this, the charge for the number of days you do not deposit money also gets added on a daily basis.
Four percent interest is charged!
Apart from this, you have to pay four percent interest every month. Accordingly, in addition to interest, you also pay many types of charges. Apart from this, you will not get any kind of reward points on payment by withdrawing cash from the card. Apart from the interest, the bank also charges cash withdrawal fee from you.
For example, if you have a Flipkart credit card of Axis Bank, if you withdraw cash from it, then the bank will charge you Rs 500 or 2.5 percent in the name of withdrawal fee. Apart from this, more than 50 percent interest will be charged on an annual basis. In such a situation, you may have to pay a charge of thousands of rupees.
CIBIL score gets worse
If you have done cash withdrawal from credit card then it completely spoils your CIBIL score. Due to this the banks think that your financial condition is very bad and because of this you should never use your credit card to withdraw money from ATM.
