Credit Cards have converted the way we look at borrowing. The cash advance or 신용카드현금화 feature accessible on your Credit Card lets you withdraw money from any bank ATM. You get instantaneous funds without the stress of submitting documentation as well as waiting for approval from the bank.
Though, this feature comes with precise terms and conditions that one must be conscious of. Here is a list of factors to consider while withdrawing money through Credit Cards.
While it is understood that Credit Cards come with interest and fees, withdrawing money on Credit Cards can verify to be a costly deal. Here are charges these loans entice:
Cash advance fee
This is the fee charged every time you withdraw money using your Credit Card. Usually, it ranges from 2.5% to 3% of the transaction sum, subject to a minimum sum of Rs 250 to Rs 500, and is reflected in the billing statement.
Asconsistent Credit Card transactions entice finance charges, so do money withdrawals. The charge is levied from the date of the transaction up till the repayment has been done.
Interest is charged on a regular percentage rate, normally from 2.5% to 3.5% per month. Bank Credit Cards offer one of the lowermost monthly and yearly interest rates, ranging from 1.99% to 3.5% plus 23.88% to 42% respectively. Unlike a consistenttransaction, for money withdrawals, there is no interest-free period; charges start amassing from the day of the transaction till it’s paid in full.
Late payment fee
If you do not pay the complete amount, late payment charges are levied on the remaining balance and this might be anywhere from 15% to 30%.
Ease of use
You could withdraw cash any time over an ATM, just as you would with a Debit Card. Additionally, unlike all other loans, there is no irritating paperwork.
Let’s assume you are faced with a short-range financial crisis and are in urgent requirement of cash. If taking a loan otherwise asking a friend for cash is not a viable alternative, advance cash or 신용카드현금화can aid you tide over the state. If your bank account does not have sufficient funds to take care of your requirements, you can withdraw money from your Credit Card, though at an additional cost.