Purpose of credit cards and cash cards

credit card

cash card

Credit card vs cash card

| Credit card | Cash card
Main purpose of use | Pay for products/installments | Withdraw cash
Highest interest | 16% per year | 25% per year
Interest calculation | Interest free for 45 days | Interest is charged immediately upon withdrawal.
Entry fee/yearly | Some certificates available | None
Accumulating points/cash back | Yes | No
Cash withdrawal fee | 3% immediately upon withdrawal | None
Value Added Tax (VAT) | 7% per year every time with withdrawal | None
Minimum repayment | 5-10% | 3-5%
Benefits Promotions | Yes | No

In summary, can a credit card withdraw cash?

Example

In the case of using a credit card to withdraw money

In the case of using a cash card to withdraw money

The conclusions obtained are as follows.

• Credit cards can only be used to withdraw cash if withdrawals are infrequent and the refund period is long.
• You can use the card to withdraw cash when you need to withdraw frequently.
• Use a cash card when you can repay it quickly.