Credit cards have a credit overdraft consumption function. The bank authorizes a credit limit to users who meet the requirements. Cardholders can make card purchases and cash transfers within the credit limit. Then, credit card cash transfers and card payments What is the difference? Will withdrawing cash affect your credit report? Let’s learn more below!

What is the difference between credit card cash transfer and credit card swiping?

1. Different concepts

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Credit card cash withdrawal refers to the credit limit granted to the cardholder by the card issuing bank or institution, which can be used for advance borrowing or transfer; credit card swipe consumption refers to the transaction in which the cardholder exchanges money for goods.

2. Enjoy different interest-free periods

There is no interest-free period for credit card cash withdrawals. From the date of cash withdrawal, interest will be calculated at 50,000% of the cash withdrawal amount every day; credit card swiping If there is a certain interest-free period, you can enjoy the interest-free period before the repayment date.

3. Different limit limits

The cash withdrawal limit for each period of credit card is usually 30 or 50 of the fixed amount of the credit card; there is no limit for credit card consumption within the available limit of the credit card.

4. Points rules are different

Points are generally not calculated for credit card cash withdrawals; points can be accumulated for credit card purchases except for the special categories designated by major banks.

Does credit card withdrawal affect personal credit report?

No. Credit card withdrawals are normal usage and have no impact on personal credit report. However, the credit report will show the user's credit card limit usage in the past six months. It should be noted that credit card withdrawals will charge bank withdrawal fees and interest, and should be repaid in full. Overdue repayment will have a negative impact on personal credit.