new Delhi : The number of CARD users has increased rapidly in the last few years. People use both DEBIT and CREDIT cards indiscriminately. But even today, those who use these cards do not know when to use which card can be very heavy on their pocket. As it is often seen that along with shopping, people use credit cards even when they need cash, oblivious to the fact that they have to pay many times more money for this.
In fact, neither cash approval nor any document is required before cash Withdrawal. So whenever there is a need, people use this card for cash, without thinking that they have to pay a big price.
Both the interest and charges on withdrawing money from ATMs through credit cards is very high. Apart from this, if you are not able to make credit card payment on time, then your credit score gets badly affected. That is why today we will tell you about the harm caused by removing CASH from CREDIT CARD so that you do not make these mistakes further –
- When withdrawing from a credit card, you have to pay ADVANCE FEE. This fee can range from 2.5 to 3 per cent depending on the withdrawal amount. This fee is reflected in your next month’s bill, which you pay with installment.
- With the help of credit card, you may have to pay a maximum of 4% monthly interest (48% per annum) on cash withdrawal from ATM. The biggest thing is that from the date of the transaction to the lost date.
- This makes your credit score negative because it describes your misery.