What is the Interest Rate on Cash Withdrawal from Credit Card

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  • September 25, 2019
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What is the Interest Rate on Cash Withdrawal from Credit Card

Cash withdrawals via credit cards are increasingly becoming common in recent years, owing to the various benefits it is providing to the users. Until today, the interest charged on withdrawals was fixed, which often demotivated users.

However, leading lenders such as Bajaj Finserv offer interest on cash withdrawal from Credit Card for a period of 50 days.

What is Credit Card Cash Withdrawal?

Credit card cash withdrawal is an essential facility provided to the users, through which they can withdraw cash from the ATM using their credit cards. Generally, the credit cards are used for card transactions and they facilitate the user to draw a certain amount as per a pre-specified limit. Additionally, the user has to pay the interest along with the amount withdrawn from the issuer.

Also Read: What Are the Best Entry Levels to Improve Your Credit Score?

The Bajaj Finserv credit card is a conglomeration of multiple credit card features and provide credit facility to the credit cardholders without charging any interest up to 50 days from the date of withdrawal, beyond which a reasonable interest rate of 3.99% is levied.

Advantages of cash withdrawal through Bajaj Finserv RBL Bank Super Card

As mentioned above, cash withdrawal through credit card is gaining importance and becoming a sought-after phenomenon in recent years. The advantages associated are as follows –

1. Instant credit

Cash crunches are a usual scenario among people, and having a Bajaj Finserv RBL Bank SuperCard is a boon in such emergency situations. Obtaining immediate cash as a credit is a huge bonus for any user as it does not require maintaining the same funds in their accounts.

This is indeed an attractive offer as it can be availed 24/7 without any difficulty. One just has to visit an ATM to withdraw the cash as and when required along with no interest on cash withdrawal from credit card.

2. Lesser formalities

It takes a lot of time to obtain a loan as it involves a great deal of formalities and paperwork prior to that. On the other hand, a credit card cash withdrawal facilitates the user to obtain cash or an advance amount without any due formalities.

A user can simply make the withdrawal through the plastic card which is not only handy but also demands no paperwork before the withdrawal.

3. Enhanced pliability

It is the rigidity of a scheme that drives a potential customer away from the same. However, with the, it is completely different. The flexibility that this card provides its users is remarkable.

Here, flexibility mainly refers to the withdrawal limit granted to every customer, which is dependent on a number of factors like patterns of spending and repayment. The limit can be increased and the late fees may be waived. Alongside, the repayment window may also be adjusted as and when the customer becomes eligible for it.

Refer to leading credit cards such as the Bajaj Finserv RBL Bank SuperCard which comes with a 50 day interest-free period on cash withdrawals at nominal processing fees.

Bajaj Finserv also provides pre-approved offers on credit cards which make availing such financial products quicker and easier. These offers are not only available on credit cards but also on business loans, personal loans, home loans, and on numerous other financial products and services. Check your pre-approved offer by submitting only a few essential details online.

How does credit card cash withdrawal impact the credit score?

Credit scores are the ratings accorded to a person or an organisation by the credit rating agencies to rate their creditworthiness based on the past trends of credit history. A good credit score generally indicated that the user is worth the credit advanced to him, and thus can be provided with advances in future too.

Therefore, it becomes imperative to have a good credit score so that one can avail future advances when required. A credit rating agency receives information regarding the overall outstanding balance of customers, and not the dues separately. Therefore, it would not directly impact the credit score.

Nevertheless, when the customer fails to repay the withdrawn amount within the specified time period, will he/she attract a penalty and it will be reflected as a decreasing credit score.

In case the user is consistent in making timely repayments of the credit he/she withdraws, he/she is free to enjoy the benefits of the Bajaj card along with the safe credit score.

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