Credit Card Users In India 2022 : The festival season has started across the country. In this season people are doing online and offline shopping fiercely. Also, credit card is being used mostly for this. In such a situation, it is important for you to know whether it is right to withdraw cash from credit card or not? If you also do this, then you should definitely take information about its disadvantages and advantages. We are going to answer your such questions in this news.
This is the reason for using
It is known that in today’s time, the convenience of cashless transactions and the increasing trend of interest-free credit period is the biggest reason for this. Along with this, many types of discounts including reward points, cashback and petrol surcharge available on credit cards make them more attractive.
cash advance facility
Let us tell you that apart from these facilities, cash advance facility is also available on the credit card, through which users can also withdraw cash from the card at the time of need. You should use the facility of cash advance only in emergency. On this you have to pay huge interest and transaction charges. Frequent use of cash advances has a negative impact on your credit score.
Be careful when withdrawing cash
Withdrawing cash from a credit card can be overwhelming for you. You should use this facility in case of emergency, but whenever you have to do so, you should pay the advance as soon as possible. It would be great if you can make the payment before the billing date.
Cash withdrawal limit
Users get various limits on withdrawing cash from credit cards by banks. This limit is decided on the basis of the total credit limit of your card. Generally, 20 to 40 percent of the total credit card limit can be withdrawn in the form of cash. If the total credit limit on your credit card is Rs 5 lakh, then you can withdraw cash from your card between Rs 1 lakh to Rs 2 lakh.
Will have to pay extra charge
If you withdraw cash advance from credit card, you have to pay extra charges in addition to interest, which can be 2.5 to 3 percent of the cash withdrawn. In such a situation, if you have withdrawn 1 lakh rupees as cash from your credit card, then the bank can charge you 2 to 3 thousand rupees for this. The bank will also charge interest at the rate of 3.5 percent every month on the cash withdrawn from you.
Here is the expert opinion
BankBazaar.com CEO Adil Shetty says that it is very important to know two things before withdrawing cash from your credit card. First and foremost, there is no benefit of interest free credit period on cash advance. With the withdrawal of cash, interest starts accruing on it. The second important thing is that cash withdrawal is considered as credit card use, which reduces the credit limit of your card.
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