Did you know that it is possible to make a personal loan with a card? Credit card is a very useful tool for most people. Its conscious use allows for a very interesting practicality in a person’s daily activities. However, in the hands of those who do not have much financial control, this mode of payment can end up becoming a shot in the foot.
With this small plastic card, it is possible to have access to many features. Whether it is to pay a household expense, debit debt or even buy products virtually, we know that this is the most common way to pay across the globe. Among all the options of use, there is the loan with the credit card.
In the form of withdrawals in the credit function, the user may, within his credit limit make these withdrawals of cash in kind. In many situations, this is the last and only alternative found by those who are in dire need of money and can find no other solution. However, this is a practice that requires great care, after all, this operation hides traps like high interest.
Thinking of helping you to understand more about this, we prepare this text with the main information about making withdrawals with the credit card. Continue your reading and see how to manage this situation.
How does the credit card work?
Generally, the act of making a cash withdrawal in the credit function of your card is viewed by the financial institutions as a type of loan. That being the case, as in any other types of loan, there are many fees and fees that are charged to the clients depending on the transaction in question.
Therefore, its operation is very simple and intuitive. Simply go to an ATM, start a normal operation and select the “Credit card withdrawal” option and the amount requested will be available if you have a limit available within the requested amount.
Considering the withdrawals and interest rates that are high, it is important that the consumer who wishes to use this line of credit for loans should make very strict financial programming to avoid as much as possible the installment of the invoice corresponding to the loan withdrawal. Otherwise, the payment of the revolving interest will leave the debt with a much higher debt.
Where to make a credit card loan?
As explained earlier, credit card withdrawals can be made at any ATM at the bank issuing the card in question. Then simply follow the options available within the box’s electronic menu. In addition, it is possible to apply for a loan at ATMs from other banks. However, this operation has even higher rates.
What is the limit for loan withdrawals?
The withdrawal limit that is normally used by banks is usually below the total available on the credit card, ie it is always lower than the amount usually made available for normal use of the credit card. The explanation for this is also very simple: This happens as a guarantee by the financial institution that the customer will always have money – although it has to bear a very high expense.
How much does it cost to borrow on the card?
The value of fees and interest are variables that fluctuate according to each financial institution responsible for issuing the credit card. However, as a rule, it is common for charges to be similar to the revolving credit of the card, which consists of the fee charged for the minimum payment of the credit card bill.
In this way, the cost of the operation is composed of the amount drawn plus the service fees plus the interest accrued on the operation – which are only closed on the invoice date. In this sense, credit card loan debt reaches very high levels and can lead consumers to become indebted.
In addition to these basic and generalized data, the rates that help to compose the total cost of this financial transaction may vary from bank to bank (responsible for issuing the card). See below, the tariffs charged in the main Brazilian institutions.
How to know if it’s worth borrowing money with a card?
For those who need money with some urgency and speed, this is without doubt one of the most indicated alternatives. After all, the credit is already pre-approved and ready to be released, with only the customer having a limit credit card available. In addition, the other possibilities are always part of the reality of all people.
However, because this is considered a loan operation – since you do not have the money you are applying for and will pay for it later – the fees charged are the highest in the market, and may be even greater than a personal loan, inclusive. Therefore, if dealing with such an expensive debt, it can easily become a serious problem of default.
Although this is a very useful facility for many situations, it is more advisable to look for other alternatives to that choice. Neither the comfort and the ease in reaching this line of credit is able to make this option viable. Therefore, other credit products are highly recommended and this is the last path to follow.
So if that is your current situation, it is important to seek personal loans that have easier payment terms, such as lower interest rates and cheaper rates. In addition, without planning the loan with the credit card becomes unfeasible. Study the possibilities, recognize your situation, and evaluate the benefits and the cons to better decide.
If you have any further questions about this subject or if you have any questions about the subject, please contact us and send us your message. We can even help you get the loan you need online.