Credit cards have many uses, make purchases, pay for services, and also have cash. However, in the eyes of experts, this last option is not recommended however.
Attractive it may be in the eyes of cardholders
Among the main reasons why it is not recommended to withdraw money from the card is because the interest rate for these cases is higher than for purchases. Then, the money you are using costs you more expensive, because in some cases, you will have to return almost double what you withdrew.
Another reason why it is not a good idea to have cash with your card is that, even if you don’t believe it, it generates a custom. Accessing cash easily and quickly is tentative, and even if you end up paying too much for it, it can be attractive and you will find yourself turning to this alternative more frequently than you think.
Now, shouldn’t we do it in any case?
Only emergencies are valid occasions to opt for these types of withdrawals, and even in these cases, it is important that you be clear that the money must be returned as soon as possible, in order to avoid paying more interest. If you can pay it in one installment, do it.
Something you should evaluate is that today, obtaining a personal loan is much easier than before, and there are even online loans, so before opting for the advance of your card, even in case of emergency, it is convenient that you analyze the other alternatives.
Finally, keep in mind that not all entities have the same interest rates and conditions, so before applying for a card, if you don’t have one, you should check all the associated costs. To do this, so you can use the Keiradella’s credit card comparator.