Credit cards have become an indispensable financial tool in our daily lives. It has so many benefits, but sometimes people love and hate it because the bank has approved a lot of credit, or the credit that they have worked so hard to raise cannot be used, which makes them sad. So, in addition to cashing out the credit card limit, is it reasonable and legal to convert it into cash? Let's get to know each other today.

The above credit card cash-out method is probably the most commonly used and most direct method of cash-out, but because it is illegal, we will not focus on it today. What I want to talk about is the method of compliant redemption of limits. I summarized it, and there are probably the following six methods:

The first method: credit card consumption. Everyone knows this method, which is to pay with a credit card instead of cash when you go to make purchases, including the current QR code payment. You can bind your credit card to Alipay, WeChat, and China UnionPay Express, or you can use your bank's mobile banking to make purchases with your card. There are also current Alipay Huabei or JD.COM IOUs, which are ways to consume credit without paying cash.

The second method: bill installment. This method means that the consumption behavior has already occurred, but the repayment cannot be made because there is no cash on the repayment date. We can apply to the bank to repay previous consumption bills in installments, and one or more amounts can be combined. You can save cash by breaking up a large bill that should be paid off in one lump sum into multiple payments.

The third method: credit card installment. This method is essentially different from the above bill installment. This installment is generally used for special business installments. Generally suitable for large consumer businesses such as automobile consumption or decoration consumption. It is a cooperation between a car dealer or a home improvement company and a bank. If the information provided by the consumer meets the relevant requirements, the bank will apply for a credit card with a corresponding limit, but the credit card limit can only be used for consumption at cooperative merchants. After consumption is completed, repayment can be made in installments according to the installment cycle.

As my friend asked, didn’t credit cards turn into cash? The above three methods are all installment or consumption, and I have never seen cash. In fact, when you go to consume, isn’t it just cashing out in disguise? Wouldn’t it be cash if you deposit the money you have to pay? A friend said that you are trying to steal the concept of exchange. What I want is real money, so please take a look at three methods.

Fourth type: Cash installment Cash installment has been described in detail in previous articles and videos, that is, converting credit card limits directly into cash through bank transactions. This is an effective way for banks to provide reasonable cash, but There is a certain handling fee, which varies widely among banks. If you want to know the details, you can check out Xiaoyin’s earlier videos or articles.

Sixth: Squat in the mall. This method is a trick I saw from some netizens, which is to squat near the checkout counter in the mall. When you see someone paying cash, offer to pay for them. You just need to get the cash back, but this method requires us to have a strong heart and be prepared to accept the glare and rejection from others, and may also be chased away by mall security. Related Q&A: Related Q&A: Can I withdraw cash with a credit card? Is there any handling fee?

There are several ways to convert your credit card limit into cash, but the cost is still quite high!

Cash withdrawal from credit card overdraft

To put it simply, it is to convert the credit card limit into cash through a bank ATM (not exceeding 50% of the credit card limit), which is equivalent to borrowing cash from the bank in advance. !

Currently, credit card cash withdrawals not only require high cash withdrawal fees (each bank has different regulations, usually 1% to 3% of the cash withdrawal amount), but also require a withdrawal fee starting from the date of withdrawal. Borrowing interest is charged at a daily interest rate of 0.05%!

For example, if you withdraw 10,000 yuan in cash through a China Merchants Bank credit card, the fees incurred are as follows:

The daily limit for withdrawing cash from China Merchants Bank is 2,000 yuan, and it takes 5 days to withdraw 10,000 yuan. take out.

The cash withdrawal fee is 1%, with a minimum of 10 yuan/transaction; the overseas cash withdrawal fee is 3%, with a minimum of 30 yuan/transaction. The cost of this block is: 2,000 yuan × 1% × 5 = 100 yuan.

If you withdraw funds across banks, you will be charged an additional inter-bank withdrawal fee of RMB 4 per transaction.

Calculated based on 50 days, the interest is: 2,000 yuan × 0.05% × 50 × 5 = 250 yuan.

Therefore, the total cost of using 10,000 yuan for 50 days is at least: 350 yuan (100 yuan + 250 yuan). The average daily interest is 0.07%, which is equivalent to a monthly interest of 2.1% and an annual interest of 25.2 %. It’s still quite high, so using a credit card to withdraw cash is not cost-effective at all!

Cash out credit cards

In the past few years, many people used POS machines to cash out virtual transactions with credit cards. Generally, a handling fee of 0.5% of the card amount was charged, with a minimum of 30 yuan per transaction. The cash-out cost for a 10,000 yuan quota is 50 yuan!

Credit card cash out, for the bank, is just a card consumption of 10,000 yuan. As long as the payment is made on time and there is no overdue payment, in theory, there won’t be much of a problem! But if the payment is overdue, the interest will be quite high!

Special reminder: Do not cash out any form of credit card, this is illegal and illegal. Here, we are only discussing theoretically and have no practical guiding significance!

In short, withdrawing cash with a credit card will charge high fees and interest. It is recommended that you try not to use a credit card to withdraw cash unless necessary!

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