Are credit card cash withdrawal fees high?

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This article analyzes the concept of credit cards, cash withdrawal fees from credit cards of reputable banks such as Sacombank, VPbank, TPbank, ... helping readers understand all the fees, interest rates when withdrawing cash and quickly find the best way to use the card for themselves.

Credit cards are cards issued by banks to stimulate consumer spending. During card usage, many people often wonder if credit cards can be used for cash withdrawal? Are cash withdrawal fees from credit cards high? Let Mytour find out the detailed answers in the article below.

Credit cards: concept, cash withdrawal fees from bank credit cards.

What to know before withdrawing cash from a credit card?

Before withdrawing cash from a credit card, you need to be aware of the following regulations:

- Banks only allow you to withdraw a maximum of 75% of the credit card limit.

- In addition to the withdrawal fee, banks also charge interest immediately on the withdrawn amount. (Interest rates range from 1.9 - 4.08% per month depending on the bank)

- Withdrawing cash from a credit card will lower your credit score, making it difficult to apply for credit limit increases in the future.

Are cash withdrawal fees from credit cards high?

In addition to the interest paid for the withdrawn cash, when withdrawing cash from credit cards offered by banks, you also incur additional withdrawal fees. Specifically:

- Cash withdrawal fee from Fe Credit credit card: 1% minimum 10,000VND
- Cash withdrawal fee from Sacombank credit card: 4% minimum 60,000VND
- Cash withdrawal fee from Tpbank credit card: 4% minimum 100,000VND()
- Cash withdrawal fee from VPBank credit card: 4% minimum 50,000VND
- Cash withdrawal fee from Techcombank credit card: 4% minimum 100,000VND()
- Cash withdrawal fee from HSBC credit card: 4% minimum 60,000VND
....

Thus, the total amount you have to repay when withdrawing 1,000,000 in cash from your Techcombank credit card is 60,000 (equivalent to 6% interest per month). The interest rate is quite high for a regular cash withdrawal transaction.

Conclusion: With the withdrawal fee (ranging from 2-4% of the withdrawn amount) + interest to be paid for the amount withdrawn (1.9% - 4.08% per month), we can see that the cost of withdrawing money from credit cards is very high. If there is no urgent need for cash, you should not withdraw money from credit cards.

By knowing how to balance expenses properly, using credit cards will bring you many tangible benefits. And if you are considering opening a credit card, you can refer to how to get a credit card prepaid or postpaid in this Mytour article.

Frequently Asked Questions

What are the key fees associated with cash withdrawals from credit cards?

Cash withdrawal fees from credit cards vary by bank and typically range from 1% to 4% of the withdrawn amount, along with immediate interest charges that can range from 1.9% to 4.08% per month.

Is it possible to withdraw cash from a credit card without penalties?

No, withdrawing cash from a credit card incurs penalties, including a cash withdrawal fee and immediate interest on the amount withdrawn, which can significantly increase the total repayment amount.

How does withdrawing cash from a credit card affect my credit score?

Withdrawing cash from a credit card can lower your credit score, as it impacts your credit utilization ratio and may hinder your chances of increasing your credit limit in the future.

What should I consider before using my credit card for cash withdrawals?

Before using your credit card for cash withdrawals, consider the associated fees, immediate interest rates, potential negative impact on your credit score, and whether you truly need the cash.

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