When you are withdrawing cash from your credit card, you must think of the interest rate before taking any decision. The cash withdrawal from a credit card isn’t just as similar as a retail purchase because you get interest-free service in the latter. Not only you will have to pay interest but you will also be charged with a transaction fee. You will also have to pay taxes on the interest. So, it can be costly to use 신용카드현금화. Here are the different charges you need to pay for withdrawing cash from your credit card.
- Interset rate
When making an online purchase, you don’t have to pay any interest but cash advance doesn’t allow you interest-free services. You will be charged around 2.5% to 3% of interest every single month.
- Finance charges
You need to pay some finance charges for cash withdrawals and these charges will be applied whenever you withdraw cash using your card. You need to pay the amount to stop these charges.
- Transaction fee
You will also have to pay for the transaction you do while withdrawing cash from your credit card. You need to pay around 2 to 3% of the cash transaction.
- Late payment costs
If you don’t pay the full money back, then you will also have to pay late payment costs on the outstanding balance.
So, these are a few costs you need to pay when you want to use cash from your credit card. It isn’t a good idea always and that’s why it would be best if you can avoid it.
How you protect yourself from paying heavy interest later?
If you want to use your cash on a credit card at cheaper interest and taxes, then you should go to a place where it is affordable for you. You should take the help of verified companies while withdrawing cash from your credit card. Whenever you need urgent money, you can use this method but there will always be chances of damage if you opt for illegal companies.
You should check the authenticity of the company before taking any decision. In some places, you might also get rewards in terms of reward points and cashback. Again, you need to ensure if the platform you are choosing for withdrawal is safe or not. Don’tfall for any rewards until you check the reviews and popularity of the company.