Why does no one recommend using a credit card to withdraw cash?

Although credit cards have many functions, to be honest, except for overdraft consumption, the function of withdrawing a line is not practical at all and the cost is too high.

1. Credit card interest will start to be charged on the day of cash withdrawal, and the interest will be charged at the rate of 0.5% per day. It can be said that the cost of interest compounding is relatively high, and some banks also charge handling fees. , based on this calculation, the cost includes both interest and handling fees, which is really not cost-effective.

Because cash withdrawal is different from direct credit card consumption. Therefore, there is only one form of repayment, which is full payment, and there is no option to repay in installments.

2. It may also affect your credit report. Faced with high interest charges and the need for one-time repayment, not everyone can easily cope with it. If the payment is not made, it will lead to overdue payment and even affect the credit report. This will be very detrimental to future loans and card applications.

3. The quota cannot be raised. To be honest, I believe that many people who use credit cards hope to increase their credit card limit by maintaining a card, but withdrawing cash from a credit card does not help at all to increase the limit.

4. There are no consumption points. If you use a credit card to make purchases, you can still save some points and redeem them for something over the course of a year. Withdrawing cash means nothing.

So no matter how you look at it, using a credit card to withdraw cash is a bad deal, so no one recommends using a credit card to withdraw cash.