Credit Cards with 0% Interest: Although credit cards provide many advantages and convenience, there are some rules you need to abide by to maintain a high credit score. Some of the fundamental guidelines for utilizing your credit card include not using it to make cash withdrawals and paying the full amount accumulated on it during a billing cycle by the due date. This is because cash withdrawals and late payments result in high interest rates.
In actuality, interest is charged on credit cards as soon as you use them to make an ATM cash withdrawal. However, what about credit cards that don’t charge interest on cash withdrawals for the whole 45–50 day billing period? Interest-free cash withdrawals are available with the IDFC First Power RuPay, IDFC First Power Plus RuPay Select, and Axis Bank Burgundy Private credit cards.
The Axis Bank Burgundy Private credit card has no fees associated with cash withdrawals or interest until the payment due date, whereas IDFC Bank’s credit cards allow interest-free cash withdrawals until the due date but charge a transaction fee.
The IDFC FIRST Bank FIRST Power+ credit card offers 0% interest on cash withdrawals until the due date, so you can choose it to avoid heavy fees. All you have to do is pay the ₹199+GST cash advance fee. IDFC First Bank stated that there would be no interest charged on ATM cash withdrawals until the due date. For each transaction, the bank charges a cash withdrawal fee of ₹199 (plus GST).
You must fulfill the following requirements to be eligible for the IDFC FIRST Power/FIRST Power+ Credit Card.
Axis Bank Burgundy Private Credit Card:
This card is designed for high-net-worth individuals and is available only to those who are enrolled in Axis Bank’s ‘Burgundy Private’ programme. No cash withdrawal charges or interest is levied till the payment due date for this credit card. The following are the requirements for eligibility:
Eligibility requirements for a new relationship or account, determined at the level of a customer ID or family ID:
Saving Account: Maintaining a minimum Total Relationship Value (TRV) of ₹5 crore within a year of the account or relationship’s start is required for savings accounts.
Payroll account: ₹10 lakh or higher in net monthly salary credit
Continuous eligibility requirements, determined at the Customer ID or Family ID level, for an existing account or relationship:
You can access the full advantages of Burgundy once you meet the Rs. 5 crore Total Relationship Value (TRV) criteria (excluding demat). The bank considers the average TRV of the last three months before making a private offer. Even though credit cards don’t charge interest until the due date, using them to withdraw cash may still not be a wise choice. Use your credit card for ATM cash withdrawals only in emergencies when you urgently need the money.
Also Read: Top 5 Credit Cards to Save on Travel Expenses in India
Banks generally warn users against withdrawing cash using credit cards. They caution that frequent cash withdrawals and high use of the cash advance limit may harm your creditworthiness. Lenders often view this behavior as a sign of financial distress and may classify you as a high-risk borrower. Yes Bank explains that this perception can reduce your chances of securing loans or additional credit lines in the future.
Before withdrawing cash, you must understand your credit card’s billing cycle. If you withdraw cash just before the due date, you get very little time to repay it. Although a credit card cash withdrawal doesn’t immediately affect your credit score, it can lower it if you accumulate large bills. Cash withdrawals increase your credit utilization ratio and the total amount on your credit card bill. If you fail to pay the full amount on time, your credit score may drop. Therefore, use caution when withdrawing cash with a credit card.
Also Read: Why Are Super-Premium Credit Cards Worth Buying?
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