The reason is that you need to pay a certain fee and interest for withdrawing cash by credit card. But cashing out is unnecessary. Generally, after it is set out in the current month, it will be paid back in one lump sum next month. Therefore, there will be no handling fee and interest. Cash-out behavior will be recorded in the personal credit investigation system, which will affect future personal loans, credit card processing, and even all aspects of daily life, such as flying and taking trains.

what is the difference between cash withdrawal by credit card and cash withdrawal?

the cost varies greatly. You need to pay two fees to withdraw money by credit card, one is the withdrawal fee, and the other is the interest on the withdrawal amount. For example, Bank of China will charge 1% RMB handling fee for each transaction, which may be the lowest. The quantity varies greatly. The maximum withdrawal limit of a credit card is the same as the credit limit. The credit card withdrawal limit of many banks is only half of the credit limit, but many tellers need to use a lot of money, so the withdrawal limit of funds can't meet the demand naturally.

what are the hazards of cashing in credit cards?

at present, POS withdrawal is one of the main withdrawal methods. Some illegal intermediaries will help cardholders pass the card and give the money to them, but this is not free, but a handling fee of up to 3% is charged. Of course, the harm of cashing out is not just to spend more money. Cashing itself is illegal and does not conform to the regulations. Earlier, the central bank had reminded that credit cards could not be cashed out. * * * 142 institutions were punished with a fine of 1.155 billion yuan, and many institutions were punished for credit card business.

how will banks rectify the cash-out situation of credit cards?

For example, Bank of China indicated that it has begun to strengthen the supervision of credit card business, including issuance and transaction. Once illegal funds and other behaviors are found, Bank of China will punish them according to relevant regulatory requirements. Cardholders who are found to withdraw money by banks will also be punished accordingly. Major banks have said that once the withdrawal is found, the cardholder's credit card may be directly frozen, or even the limit will be reduced, and the credit card will be sealed.