Important! Here Is the Risk and the Dangers of Credit Card Cash Withdrawals
Having a credit card is one way to facilitate various transactions in everyday life. However, when you withdraw credit card cash, there are risks and dangers!
Before the credit card cash withdrawal, let’s consider first of Mockbeard following information in order to help minimize the risk.
The Role of Credit Cards: One Card for All Activities
One way to make non-cash payments is by using a credit card.
At present, credit card usage is increasingly mushrooming because of its easy and practical access, staying swift for all activities.
So the wallet is left behind or when going to a place prone to theft, credit cards can be used practically to minimize risks.
Cash Card Cash Limit For Emergency Funds
Not only for payment transactions, credit cards can also be used as a means of direct cash withdrawal.
The procedure is very easy, using an ATM machine as usual, so the steps are quite practical like a debit card.
In addition to being more practical because it does not need to be difficult to go to the bank or manage loan applications, cash withdrawals using a credit card can also be maximized for emergency and business capital.
Because today many people are hampered by licensing and completeness of letters to apply for business loans, the process of cash card credit withdrawals is often used as an alternative.
So, it is not new if someone can get financial assistance for business development, urgent needs or business capital when using credit card cash withdrawal services.
Things to Look For in Credit Card Cash Withdrawals
Although it is quite easy and practical to access, the cash card cash withdrawal process must be done with full consideration.
The reason is, if there is a misstep or lack of planning, there will be greater losses obtained from the cash withdrawal process.
For that, here are 4 things that must be considered when trying to process the cash card credit withdrawal.
Must Be Paid On-Time
To reduce the risk of being chased by debt collectors , make sure to pay off on-time with a full payment system .
Why is that? Because if the payment is based on minimum payment , there will be a risk of paying off late.
Don’t forget to record when payments must be made. For some people, even though they have recorded, still sometimes there are things that make deadlines forget so the payment process is stuck.
When payment is stuck, the payment record will give a new problem that leads to blocking credit card users.
Fee for Pulling Cash Credit Cards
Nothing in the world is free, as well as the process of withdrawing credit cards.
To be able to get a certain amount of money in accordance with the limit, the credit card owner must pay a withdrawal fee of 4%. So, there will be a discount when withdrawing money according to the nominal value.
For payment, the average rate of interest is around 2% to 3%. The nominal will certainly be greater in accordance with the amount of cash withdrawals.
Therefore, you should not take money above your needs because the payment costs can be even more bloated.
Just imagine, if the limit is IDR 100 million, then 4% of the payment is enough, IDR 4,000,000.
Of course, this nominal is not a little thing because quite a lot of goods can be purchased using the money. So make sure to choose the cash withdrawal amount as needed.
If necessary, add emergency fund savings or other savings to reduce the nominal amount of credit card cash withdrawals. So, the monthly bills and interest borne can be reduced.
The Greater the Limit, the Interest and the Bill Also Swell
As explained earlier, the interest of a bill will be multiplied by the nominal according to the limit or taken. So, if the limit is getting bigger, the bill will also get bigger.
Especially if the payment that must be made is far above the ability. Because of that, do not misstep when doing credit card cash withdrawals.
There are many people who lose some items just to pay credit card bills. Not a few also experience bankruptcy or until a debt collector is chased.
Surely no one wants to experience this, so in arranging loans using the credit card cash withdrawal process must be maximized so that the nominal is not too large and still affordable .
Only for Urgent Purposes
Although credit cards have a system of borrowing money and the estimated payment is measurable, it is strongly recommended that you only use the cash withdrawal process if the situation is urgent.
In contrast to ATMs that make cash withdrawals from savings, credit cards provide real money but are not owned in essence.
Therefore, it will be very important to be wise not to make cash withdrawals if credit is not for important and urgent matters.
Maximize savings and investment rather than having to take money from a credit card.
If you still have time and are not in urgent need of money, it is better if the salary and other income arrangements are allocated partially for emergency funds.
Emergency funds are special savings that can be taken at any time to deal with sudden needs.
Withdraw Credit Cards Wisely with the Mockbeard Application
Not only for financial planning in the form of savings, investments, or purchases, Mockbeard application can also be used to record credit cards.
The Mockbeard application will provide an opportunity to record in detail about transactions, recurring transactions, accounts, financial plans, investments, financial products and so on.
The trick is to click on the My Features feature. Then, after selecting my account menu, click the added option and the cash account, bank account, accounts receivable, loan account, credit card account funds menu will appear.
After that, select a credit card account and enter the limit according to the financial planning of each person.
However, if you have more time, it is better to save for emergency funds both from investments, deposits and so on.
Don’t worry about recording and details, because the Mockbeard application is ready to help you in optimizing your budget planning.
Do you have a plan to make cash withdrawals with a credit card? For what purpose do you use these funds?
Because the information above is very important for anyone who wants to take money through his credit card, then don’t forget to share it with a fellow credit card owner, thank you.