Credit cards are a popular payment method in India, and understanding the fees and charges associated with them is crucial to avoid unexpected expenses.
Here is a breakdown of some of the most common fees and charges:
Annual fee: This is the fee charged by the credit card company for the use of the card. It is usually charged annually, and the amount can vary depending on the card and the benefits it offers.
Interest rate: This is the rate charged on any outstanding balance on the card. The interest rate can vary depending on the card and the issuer, but it is usually around 3-4% per month.
Late payment fee: If you fail to make the minimum payment by the due date, you will be charged a late payment fee. The amount can vary, but it is typically around Rs. 500-1,000.
Cash advance fee: If you withdraw cash using your credit card, you will be charged a cash advance fee. This fee is usually around 2.5-3% of the amount withdrawn.
Foreign currency transaction fee: If you use your credit card to make a purchase in a foreign currency, you may be charged a foreign currency transaction fee. This fee can be up to 3% of the transaction amount.
Over limit fee: If you exceed your credit limit, you will be charged an over limit fee. This fee can vary, but it is typically around Rs. 500-1,000.
It is important to read the terms and conditions of your credit card agreement carefully to understand all the fees and charges associated with your card.
By doing so, you can avoid unexpected expenses and use your credit card more effectively.
Additionally, it's a good idea to pay your credit card bills on time and in full to avoid interest charges and late payment fees.