What is a Credit Card Loan?

A credit card loan (tiếng Việt: vay thẻ tín dụng) refers to borrowing cash against an existing credit card limit — commonly called a cash advance. In Vietnam, cardholders may access this through ATMs, bank counters, or internal transfer services.

Cost Structure

• Cash advance interest: 20–30%/year, applied from the transaction date (no grace period)
• Cash advance fee: 3–4% of transaction amount, minimum VND 50,000–100,000
• Late payment fee: 5–6% on the minimum unpaid balance

Key Risks for SMEs

Using credit card cash advances for business working capital is high-cost and risky. The absence of a grace period and compounding interest can significantly increase total repayment costs. Businesses should consider structured SME loan products offered through lending platforms for lower-cost alternatives.

When It Makes Sense

Brief, urgent cash needs repayable within 1–2 billing cycles. Not suitable for long-term business financing.

Ví dụ minh họa

Một chủ cửa hàng tại TP.HCM rút 30 triệu đồng tiền mặt từ hạn mức thẻ tín dụng để nhập hàng gấp, chịu phí ứng tiền mặt 4% (1,2 triệu đồng) cộng lãi suất 28%/năm tính ngay từ ngày rút tiền. Sau 3 tháng chưa trả hết, tổng chi phí lãi và phí vượt 3 triệu đồng — cao hơn nhiều so với một khoản vay vốn lưu động có kỳ hạn phù hợp.

English: A shop owner in Ho Chi Minh City withdrew VND 30 million cash from a credit card limit to restock urgently, paying a 4% cash advance fee (VND 1.2 million) plus 28%/year interest starting immediately. After 3 months, total interest and fees exceeded VND 3 million — far higher than a properly structured working capital loan.