If you have a credit card, you might be familiar with the term credit card withdrawal. This feature allows you to withdraw cash by using your credit card. This withdrawal facility will reduce the total limit of your credit card.
Before you start using this feature, you need to know about some benefits and disadvantages of this withdrawal feature. Different banks may have different rules and regulations on how the users can withdraw cash from their credit cards.
BENEFITS OF WITHDRAWING CASH FROM YOUR CREDIT CARD
EASE OF USE
It is very easy for you to use this withdrawal process at any time you want. You can use your credit card for taking cash from any ATMs around your location. There is no complicated paperwork that you need to do for getting this loan approved. As long as you have a limit on your credit card, you can withdraw cash from the nearest ATM around you.
When you withdraw cash from your credit card, you may be eligible for getting some rewards. Some common rewards are awarded to the customers, for example, reward points, cash back, fee waiver, etc. You have to check with your bank for finding out about these rewards.
Although you can find some benefits from this withdrawal facility, you still need to calculate all interests, fees, and other costs very carefully. The cash advance fee is one of the most popular fees associated with this credit card withdrawal feature.
When you withdraw cash from your credit card, you will be charged about 2 – 3% from your loan as this cash advance fee. You also need to pay the interest for your cash advance loan from your credit card. Most credit card companies also charge about 2 – 4 percent interest rate of your cash advance loan every month.