Attention! You should NOT withdraw money from the ATM with your credit card for this reason

use your credit card withdrawing cash from the ATM may seem like a quick solution in times of need, but this practice carries significant risks that could seriously affect your financial situation.

To have a clearer idea of ​​this scenario, La República interviewed Jorge Carrillo Acosta, a Finance expert at Pacífico Business School, about the main reasons why having money with your credit card could cost you much more than you imagine.

Why you should NOT withdraw money from your credit card at the ATM?

Using this alternative if you need cash can be harmful to your pocket, since you start accumulating interest from the first day.

“Typically, credit card cash provisions tend to have the interest rates highest on the market, exceeding the average rate and even reaching 90% annually. In any case, you should plan to obtain a personal loan or even a card loan, that is, a loan linked in some way to having a credit card,” explains Carrillo Acosta.

What other disadvantages may there be if you withdraw money from your credit card ATM?

High interest rates aren’t the only thing to consider when withdrawing cash from your credit card, but this practice could also hurt your credit card. credit history.

“Financial institutions, upon seeing that you have used cash with your credit card, consider you a very risky client, because they know that this is the last resort in a situation of financial desperation. Some banks, upon seeing that you have withdrawn money from the card, they do not grant you the credit you have requested, they reject it because having cash on the card is a bad precedent,” said the expert.

Commissions that banks should NOT charge you, according to SBS

It is important to know what fees banks should not charge you when you have a credit card or loan. According to Banking Superintendency, Insurance and AFP (S.B.S.) there are certain charges that financial institutions cannot apply:

1. Credit evaluation: the evaluation process before granting a loan, including consultation with the risk center, should not generate costs.
2. Sending electronic statements: This practice should be free.
3. Advance payments: Total or partial payments of your credit should not generate additional commissions.
4. First proof of non-debt: once the debt has been paid, the issuance and delivery of the first certificate of non-debt must be free of charge.
5. Proof of credit status: If the financial institution wrongly reports the debtor to the SBS Risk Center, the correction and issuance of the certificate must be free of charge.
6. Collection management: Calls, letters or visits for collections should not involve additional charges.
7. Late payment charges: They cannot charge charges other than late payment interest for late payments.
8. Insurance policy administration: In the case of mandatory credit life insurance, charges for the administration of the policy should not apply.
9. Attention to clients with payment difficulties: the procedures associated with the treatment of clients with temporary payment difficulties, in the context of an emergency, must be free of charge.