Credit Card Cash Transaction: 3 disadvantages of withdrawing cash from credit card that you need to know

Credit Card: Credit cards tin beryllium incredibly utile successful today’s world. When you find yourself abbreviated connected cash, they tin assistance you negociate your expenses easily. One of the large benefits of recognition cards is the grace play for repayment. If you wage disconnected your equilibrium during this time, you won’t incur immoderate involvement charges. Additionally, galore recognition cards travel with assorted offers and discounts, which contributes to their popularity.

Not lone this, but recognition cards besides let for currency withdrawals done a diagnostic known arsenic currency advance. While this tin beryllium convenient, it tin besides beryllium rather costly. If you marque a currency transaction with your recognition card—intentionally oregon by mistake—you mightiness look important fiscal repercussions. Once the transaction is made, regretting it won’t bring you immoderate relief.

Cash Transactions with Credit Cards: How overmuch currency transaction is done done it?

All recognition paper users person the enactment to retreat cash, but the magnitude you tin entree depends connected your card’s limit. Most banks licence currency withdrawals of 20 to 40 percent of your full recognition limit. For example, if your recognition bounds is Rs 5 lakh, you could retreat betwixt Rs 1 lakh and Rs 2 lakh successful cash.

Disadvantages of withdrawing currency from a Credit Card

1. High Charges: While you tin retreat cash, it comes with a interest ranging from 2.5 per cent to 3 per cent. If you retreat Rs 1 lakh, you could extremity up paying betwixt Rs l2,500 and Rs 3,000 successful fees, which tin beryllium rather frustrating.

2. No Interest-Free Period: Unlike regular purchases, currency advances bash not payment from an interest-free grace period. This means you’ll commencement accruing involvement connected the withdrawn magnitude immediately.

3. Impact connected Credit Score: Frequent currency withdrawals tin negatively impact your CIBIL score. Therefore, see utilizing this enactment lone successful utmost situations erstwhile nary different alternatives are available.