Are you also a credit card holder? Planning to withdraw the money with it? Then before that, just read this article now. In today’s world of online shopping and easy payment plans, credit cards have become super popular. They not only help you out financially during tough times but also let you shop in a way that fits your budget.
There are plenty of perks that come with having a credit card. Users can enjoy various offers, discounts, and reward points, making shopping a lot more affordable. Plus, many credit cards provide rewards and cashback for fuel purchases.
While credit cards make shopping easier, they can also lead to serious issues if you’re not careful. It’s important to use them wisely. They allow you to withdraw cash from ATMs, but if you don’t know the rules, you might end up regretting it later.
The amount you can withdraw in cash from a credit card depends on your card’s limit. Most banks let you take out about 20 to 40 percent of that limit. However, the downsides of cash withdrawals often outweigh the benefits. The main upside is that it can help you out in a pinch, but many people don’t realize that there are hefty fees associated with withdrawing cash from a credit card.
Withdrawing cash from a credit card can impact your CIBIL score, so if you do it often, tread carefully. Plus, there are various fees that come with cash withdrawals. Typically, you’ll see a charge of about 2.5 to 3 percent of the amount you take out, and there are also transaction fees involved. On top of that, interest on the cash you withdraw kicks in right away, usually ranging from 2.5 to 3.5 percent every two weeks.