Five Credit Card Cash Withdrawal Charges to Avoid This Season
Most people nowadays own a credit card. This card can come in handy when people do not have cash present. A credit card acts as a great asset. But people should be aware of the different charges that the bank levy on their customers. One of the charges is credit card cash withdrawal charges.
When people fail to make the payment within the stipulated period, they need to give a fine. Apart from that, people also need to pay extra when they spend over their limit or pay for something outside their normal purchases. Bajaj Finserv also charges certain fees from their customers when needed. When you opt for an instant credit card, you need to acknowledge certain terms and conditions.
Once the company approves you, they will send you a letter with the cardholder agreement. In this agreement, the credit card company will provide all the details about the different charges one needs to pay when using the card. For this reason, people should carefully go through the various terms and conditions before agreeing to them. Let us check how people can avoid certain charges when using a credit card.
When people fail to pay the entire amount of their credit card bill, they need to pay interest. Go through your cardholder agreement and check the annual percentage rate to understand how much interest you need to pay. Most of the time, the cards would charge a variable APR that goes up and down with the prime rate. But some cards also offer a fixed APR, and the fixed rate does not affect it. Many times your grace period will now include cash withdrawal in advance. To avoid this charge, make sure to pay the bill amount after each cycle. And if you cannot do that, then lower your spending and opt for a 0% APR card, which will not take an interest for 21 months.
Cash advance fees
Sometimes people need to have cash and not their card. For this reason, they opt for a cash advance and need to pay the credit card cash withdrawal charges. The company would charge a 3% to 5% charge for every card advance. For this reason, customers should stay careful as the money can add up when withdrawing a lot of money. To avoid this, try to borrow money from friends and families or opt for a personal loan.
Late Payment fees
If people forget to pay or run late to pay their credit card bills, then the company would charge a late payment fee. When you pay the bill late, the company would ask for a charge as fees. But those who keep on paying the amount late every month for the next 6 months have to pay a higher charge. To avoid this, try to make the minimum payment by the due date and this way, you can keep a healthy credit score.
Over the limit fees
People who fail to stick to their limit and withdraw more money than they can, then the credit card company would issue an extra charge. It is important for people not to spend more than their credit limit. Try to set an alert that will prevent you from spending more than the limit.
Many times, different credit card companies would charge an annual fee from their customers. But sometimes, the credit card company will not charge this fee in the first year. From the following years, they charge the same fees for every year. To avoid this, try to opt for a card that has no annual fees. But in case you have a card that charges annual fees, you can ask for a retention offer.