Withdrawing money from ATMs through Credit Card will sometimes be convenient. Withdrawal of money from ATMs does not require bank approval or any document. But you have to pay a high cost for this facility. Both interest and fees are very high on withdrawing money from ATMs through credit cards. In addition, if the cardholder fails to make a payment of the minimum due amount, his credit score is badly affected. We are telling you in this article why the credit card should not withdraw the cache from the ATM.
Advance Fees: The number of times you withdraw from the credit card will be charged. The fee can be from 2.5% to 3%, depending on the number of withdrawals. This fee appears in your next month's bill, the installment of which you have to pay.
Finance Charge: The payment is made on the amount made, which is also rated as an advance fee. This charge runs from the date of withdrawal until the full payment is made.
Interest Rate: Credit Card allows you to pay a monthly interest of up to 4% (48% annually) on cash withdrawals from ATMs. It may also be different, according to the bank. It takes a period from the date of the transaction to its payment. So, it is very expensive. Also, there is no reward point.
Credit Score: Withdrawing money from ATMs from a credit card has a negative impact on your credit score, as it explains the bad financial condition of the cardholder. The CIBIL score mentions three points. This shows whether the loan has been paid in time or not, you have never missed the loan, you have completed the payment of interest. Every information related to your credit card is in the CIBIL score. CIBIL score explains how you have taken a stand in the sum of the debt in the last 24 months.
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