Credit Cards help you make instant cashless payments to all shops, online websites, and other vendors. While having one feels like an additional responsibility, it lets you build your credit history while you are already employed to get better interest rates and Loan terms in the future. Many banks let you use your Credit Card to withdraw cash from the nearest affiliated ATM. However, there are certain limitations. This facility is unavailable on all cards.
Before you get your card from the bank, ask for a complete set of information. Withdrawing cash using Credit Cards is not free, and the charges vary between banks.
How to withdraw money from Credit Cards?
Firstly, you need to visit the nearest ATM branch of the affiliated bank. Like Debit Card withdrawals, insert the Credit Card into the slot when prompted. Enter your PIN and withdraw the amount according to your availability. However, you incur interest charges on the withdrawn amount and advance fees as each card has a cash limit.
Benefits
You get immediate access and liquidity when you withdraw funds using Credit Cards. You need not go through a lengthy application process. Easily apply for a Credit Card online, skipping the hassle of submitting too many documents or signing papers. Repaying your dues on time improves your cash limit, credibility and score, limits your expenses, and offers many benefits.
What is the cash withdrawal limit?
You need to follow the cash limit while using Credit Cards for withdrawals. It denotes the specific limit until you can withdraw cash from the Bank Account. The limit is set at 30% to 40% of the amount made accessible to you.
What is the advance fee?
The Credit Card cash advance fee gets added to your credit whenever you use the card to withdraw cash. Usually, it is a certain percentage of the total amount of cash you withdraw. Each transaction adds up the specific amount of the fee. For example, if you make multiple withdrawals daily, each transaction incurs separate charges. Once you have used your Credit Card to withdraw money, the charges reflect on the card’s monthly bill.
How much interest does the bank charge?
The Credit Card interest rates for cash withdrawals from ATMs differ between banks. Some may charge a monthly interest rate between 2.95% to 3.5% and a yearly interest rate between 35.4% to 42%. You should assess and ask the bank about the interest rates, late payment penalties, rewards, cashback, and other discounts on their cards.
Conclusion
You can always go online to understand how Credit Cards function, along with details on their fees, features, and other add-on benefits. Note down your dues and pay them before or on the due date to maintain your credit score and avoid falling into the debt trap.
Credit card interest rates are much higher than other types of debt, such as mortgages.
The average credit card interest rate is around 16%, with the average interest rate for a borrower with bad credit an even higher 23.5%.1 If you qualify, getting a low-interest credit card can help you save money since paying less in interest means you’ll be able to pay back your balance quicker.
We’ll go over the basics of credit card interest rates and tips for finding one with low interest.Read the blog here: How to Get a Low-Interest Rate Credit Card?
Sephora Credit Card Supports Apple pay.
Pay quickly and securely anywhere.
Apple Pay is accepted including many restaurants, stores, and hotels.This credit card offers 15% off their first purchase on the Sephora website.
A credit card is a plastic card issued by a bank or a financial institution, allowing a consumer to purchase goods and services on credit.
It is a digital alternative to cash-based transactions.
some documents are required like id proof and all.
Also, check out the eligibility every card has its own eligibility criteria.
