Because the cost is very high.

Withdrawing cash by credit card requires a one-time payment of cash withdrawal fees, and cash withdrawal interest is also charged on a daily basis. The cost of withdrawing cash is high for users, so it is said that it is best not to withdraw cash with a credit card. If you apply for a credit card loan product directly, the user only needs to pay interest and does not need to pay additional fees. It can be seen that applying for a loan directly is more cost-effective than withdrawing cash with a credit card. So the cost of withdrawing cash with a credit card is too high.

You should pay attention to the following issues when withdrawing cash with a credit card:

1. There is no interest-free period for withdrawing cash with a credit card. Interest will be calculated from the day of withdrawal. If you withdraw 2,000 yuan, 1 yuan will be generated every day. There may be interest, and there may also be handling fees. This cost is relatively high.

2. If a bill has been issued and a cash withdrawal occurs before the bill has been paid off, then the subsequent repayment will give priority to repaying the bill, and only the cash withdrawal can be repaid if there is excess money, which may lead to Interest accrues on the cash portion until the entire balance is paid off.

3. Cash withdrawal by credit card itself does not affect your credit record, but it may affect the credit card limit increase, so it is better to use credit card to withdraw cash as little as possible.

4. Withdrawing cash by credit card is not a good card use behavior. Try to avoid it. The main reason is that the cost is too high. There are no consumption points and there are fees. It is completely the most unreasonable way to use the card.

Credit card cash-out issues:

Credit card cash-out is illegal. There are several illegal cash-out behaviors as follows: 1. If your friends have a store, you can cash out through their POS machine. However, this method can be used once or twice. If it is used too many times, it will be discovered by the bank. And you have to pay a certain handling fee when cashing out, but this method is illegal and prohibited by banks. 2. When the cardholder purchases online from a friend or family member who owns an online store, he or she needs to open a credit card for payment. After the transaction is completed, the friend will give you the money. In this case, a handling fee will also be incurred. (Illegal behavior) 3. Using a credit card to withdraw cash from the bank is relatively expensive. You have to pay an interest of 0.5% per day and a handling fee of 2.5 to 3%. However, this is not considered illegal cashing out. It is more expensive. Safety. 4. Lend your credit card to friends or family members who have consumption needs. They will use the credit card to make purchases, and then transfer the consumption amount to you in cash. Note: Once you are caught cashing out a credit card, your credit record will be added in serious cases, and your home loan will be affected. Sometimes banks will also "remind" cardholders who cash out to handle installment business. In this case, it is best to handle it obediently, otherwise they may be punished by the bank. The Supreme People's Court, the Supreme People's Procuratorate, the People's Bank of China and other departments have issued notices requiring severe crackdowns on illegal credit card cash-out and arbitrage activities.

The dangers of cashing out by credit card: First, cashing out by credit card increases the instability in my country’s financial order. Our country has a strict access system for financial institutions, and there are a series of strict regulations to monitor the inflow and outflow of funds from financial institutions. Those criminals united with merchants to conduct unreal transactions such as swiping cards through virtual POS machines, and engaged in disguised credit card cash withdrawals. However, they were outside the legal framework, violated the country's legal provisions on financial business franchises, and deviated from the People's Bank of China's cash regulations. Relevant regulations on management may also provide facilities for illegal activities such as "money laundering", which undoubtedly creates unstable factors for my country's overall financial order. In addition, the increase in bank risks and the formation of a large number of non-performing loans will also destroy the integrity environment of society and hinder the healthy development of the credit card industry. Secondly, illegal cash withdrawals cause huge harm to card-issuing banks. The vast majority of credit cards are unsecured lending instruments. As long as the cardholder makes a purchase, the bank must bear a share of the repayment risk. Therefore, under normal circumstances, banks guard against overdraft risks through high overdraft interest or cash withdrawal fees. However, the act of cashing out on a credit card circumvents the high cash withdrawal fees set by the bank and crosses the bank's prevention threshold. In particular, some loan intermediaries help cardholders forge identity materials and continuously increase credit card limits. The normal business of banks has been greatly disrupted, and it has also brought huge hidden risks.

Due to the large amount of cash-out funds, cardholders are tantamount to obtaining interest-free and unsecured personal loans. The card-issuing bank cannot know the use of these funds, and it is difficult to effectively identify and track them. The credit risk pattern of credit cards has actually evolved into the credit risk of investment or speculation. Once the cardholder is unable to repay the cash amount, the bank will lose not only the loan interest, but also a large amount of assets. Finally, for individual cardholders, credit card arbitrage also brings great risks to themselves. On the surface, the cardholder obtains cash through cashing out and reduces interest expenses, but in fact, the cardholder needs to repay the loan after all. If the cardholder cannot repay on time, he must bear higher interest than the overdraft interest. Late repayment charges may result in a bad credit record, making it very difficult to borrow funds from banks in the future, and you may even have to bear the legal risk of lack of personal credit.