Borrowing money has become an easy affair with credit card cash withdrawal. You can now withdraw credit card cash from an ATM conveniently with the help of the cash advance option that your credit card provides.
Get easy money instantly without having to fill in documents, applications, or even wait for the bank’s approval. However, you can know the credit card interest rates and other terms and conditions associated with this feature to reap the benefits fully.
Go through the following section to understand the particular terms and conditions so that you can borrow money in times of need when credit card cash withdrawal becomes a dire necessity.
Charges: Taking a loan from your credit card is not free of interest rates and other fees. The entire process can be a bit on the costlier side. The charges that will be associated with credit card cash withdrawal are:
- Interest rates: People believe that credit card interest rates are very high, and over time it builds up to become debt which is no less than a liability. However, people don’t understand that a credit card offers a grace period of 45 days from the issuance of the statement. It also has a due date specified; if you pay the outstanding amount well within the stipulated due date, no interest will be levied on the outstanding amount. The bank will charge exorbitantly only if you fail to pay the due amount within the due date.
- Penalty charges: You have to pay late payment fees only when you fail to pay the bills. It is calculated on the credit card interest rates. These charges are avoidable.
- Annual fee: Your bank will charge a nominal yearly fee on the credit card that you are using. However, the amount of payment depends on the privileges you are getting by using the card.
- International transaction fees: Suppose you make payments abroad, you will have to pay international transaction fees. The fee usually is not more than 2 to 5% on the amount you have paid. You can get a credit card with zero international transaction fees to slash your expenses.
- ATM withdrawal fee: As stated earlier, you can opt for a credit card cash withdrawal from ATM, but it comes with a nominal ATM withdrawal fee called a cash advance charge. Also, the charge that is levied is done daily. So, steer clear of making ATM cash withdrawals using credit cards. Note that the Bajaj Finserv co-brand credit card imposes a 0% interest rate, provided you pay the amount within 50 days of borrowing the money.
How to reap the benefits of a credit card and not pay the unwanted fees?
- Maintain a credit score: Don’t be a defaulter; that way, your credit score will not suffer, and you can continue benefiting from using a credit card. Remember, a credit card cash withdrawal will not impact your credit score negatively but failure to pay it on time will.
- Reward points: A credit card holder receives exciting rewards from most banks, such as discounts, gift coupons, exciting deals, and more. The reward points pile up and are redeemable against gift coupons, gift cards, air miles, and more. Kindly note that you are depriving yourself of getting the reward points when you are opting for credit card cash withdrawal. The cash advance feature is meant to support you in times of desperate need.