Know the rules before withdrawing cash from a credit card, otherwise, you may get into trouble.

Nowadays the use of credit cards has increased a lot. It is not only convenient for shopping, but can also be useful for withdrawing cash in an emergency. However, it is very important to know some important terms and conditions before withdrawing money from a credit card, so that you do not have to suffer financial loss.

When you withdraw money from a credit card, the bank charges a cash advance fee, which is usually 2% to 3% of the withdrawn amount. This fee is added to your credit card statement. For example, if you have withdrawn ₹10,000 and the bank charges 3% cash advance fee, you will have to pay ₹300 extra.

Usually, there is a grace period of 20 to 50 days on purchases made with a credit card, during which you do not have to pay interest. But this grace period does not apply when withdrawing cash.

Every credit card has a cash limit, which can be anywhere from 20% to 40% of your total credit limit. Withdrawing more than this amount may result in a failed transaction.

If you do not repay the cash advance on time, it can affect your credit score. A bad credit score can cause problems in getting a loan or a new credit card in the future.