Why you Should Never Withdraw Cash on a Credit Card

Posted by Peter Brady on Wed 23rd August 2006 at 07:00 AM, Filed in Credit Tips

As a rule, withdrawing cash on credit cards can be a very expensive business.

First off, you’re going to be paying very high rates of interest from the instant that you withdraw your cash. On top of that you will be paying interest on accumulated interest if you don’t clear the balance.

Secondly, as a rule, credit card operators charge extortionate fees for withdrawing from a cash machine or over the counter. Fees can vary but they are normally in the region of 2% per withdrawal. Therefore, it’s a bit of a no brainer to avoid cash withdrawals at all costs.

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