Do I Need To Pay Interest On Credit Card Cash Withdrawals?

By | March 5, 2020

Although you can use your Credit Card to withdraw cash from an ATM. Did you know that it is an expensive option? Find out more in this video. 

You can use your Credit Card to withdraw cash from an ATM. However, it’s an expensive option. You must consider that the moment you withdraw cash, you are charged with a Cash Advance Fee which can be 3% of the withdrawn amount. You’re also charged with interest that can be as high as 42% p.a., and a separate late payment fee if you fail to clear your dues in time. Most importantly, you don’t get any interest-free period for cash withdrawals that you get for other direct Credit Card transactions. As a result, your Credit Card bill snowballs in no time which might lead to accumulation of debt and a damaged Credit Score.
As such, you’ll be well-advised to go for this option only as an absolute last resort. You can always reach out to your friends and family or get a Personal Loan if you need to raise funds. Then there are other options as well, like Credit Card-linked pre-approved loans, payday loans or microloans, loan against gold, Fixed Deposits and even endowment plans.

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