For most of us, convenience takes center stage in all walks of life. In fact, that has been the basis for the technological advancements mankind has made throughout the years. That was also the concept behind the ideation and implementation of credit cards. Over the last 60 odd years, credit cards have slowly but surely penetrated markets, and while warming up to the idea of owning a credit card did take some time in India, we now have nearly 50 million people owning a credit card.
It goes without saying that credit cards provide us with greater convenience. Unlike debit cards, where you can only spend the amount that you already have in your checking account, credit cards provide us with a different credit line. This means that we no longer have to worry about diminishing funds in our bank accounts, while credit cards also come with a myriad of benefits and offers, which give us even more reasons to make payments via credit cards. Yet another advantage of owning a credit card is that you can withdraw money from an ATM by using your credit card.
However, when you do so, a certain fee is charged, which is the Credit Card Cash Advance Fee. This charge is usually in the region of 2.5% – 3.5% and varies from institution to institution. While some of us tend to gloss over this fact, others might not be aware of it. If you’ve ever withdrawn money from an ATM by using your credit card, you too would have been charged with the cash advance fee. So, how do you go about avoiding this fee? After all, you would be paying at least Rs. 300 to Rs. 500 while withdrawing money, which, understandably, would not please those who aren’t aware of such a charge. Let us take a look at how you can avoid paying credit card cash advance fees.
Make withdrawals using debit or ATM cards
This is fairly straight-forward and quite evident. The easiest way not to get hit with a cash advance fee is by making ATM withdrawals using your debit/ATM card. With credit cards, the interest is calculated from the time you make the withdrawal, and given the fact that the cash advance fee can be anywhere between 2.5% – 3.5%, you might have to end up paying a significant amount once everything is said and done.
This is why experts advise cardholders against withdrawing money by using their credit cards. However, if you have to, ensure that you pay the amount back as soon as possible.
Go with a financial institution that offers free ATM withdrawals
Now, this might once again seem fairly straight-forward. However, you may not be able to find a financial institution that offers free ATM withdrawals. What you can find, however, is financial institutions offering free ATM withdrawals within a certain period. For instance, the Bajaj Finserv RBL Bank SuperCard lets you withdraw the amount from an ATM without any additional charges for up to 50 days. This essentially means that you pay zero interest rate on the money you withdraw from an ATM for up to 50 days.
After the expiration of the 50-day period, you have to pay an affordable rate of 3.99% per month. Apart from this, you only have to pay a one-time cash withdrawal fee of 2.5% as the processing fee. This feature makes the Bajaj Finserv RBL Bank SuperCard an extremely affordable credit card, even if you have to make cash withdrawals using your credit card.
The Bajaj Finserv RBL Bank SuperCard also extends a host of benefits and features and lets you take a loan against the credit card, which you can repay within a 90 day period. You can do so inconvenient and affordable EMIs, and repay the amount in three installments.