New Delhi: There has been a steady increase in the number of credit card users in the country. Users like the interest-free payments, reward points, cashback and other offers available on credit cards. Now, along with shopping bill payments, credit cards can also be used for cash withdrawal from ATMs.

Many people have a question in their mind whether it is right to withdraw cash from a credit card. Today we will tell you the correct answer to this.

How much cash can be withdrawn

You can withdraw cash only according to the credit card limit. The cash withdrawal limit is different for every user. Many banks allow cash withdrawal of only 20 to 40 percent of the credit card limit. This also depends on the limit of the card.

How beneficial is cash withdrawal

Although withdrawing cash is not beneficial at all, but one advantage of this is that you can withdraw money in an emergency. Apart from this, there is no other benefit of this facility. The reason for this is that you have to pay interest on withdrawing cash and you also do not get any reward points.  

How much does it cost

All banks charge different rates on cash withdrawal. Usually, 2.5% to 3% is charged on this. Apart from this, transaction charges are also levied. This charge is levied from the transaction date till the bill payment. Monthly interest is charged on cash withdrawal. This interest is charged till the withdrawal amount is fully deposited.

At the same time, if you do not pay the full amount withdrawn from the credit card on time, then you will have to pay late payment fee on the outstanding balance. This charge can be from 15 to 30 percent.

ATM Fees

Many banks do not levy any charges on ATM transactions, but if there are more transactions, then a fee has to be paid. In such a situation, if you use credit card more to withdraw cash, then you may have to pay ATM charges.