5 Credit Card Hidden Charges You Maybe Not Be Aware – Know How Your Money Vanishes and How to Save
Credit Card Hidden Charges – “Hello sir, I am calling from ABCXYZ Credit Card Company, we have brought a lifetime free credit offer for you”. Friends, I hope you too get such calls, in which you will get an offer to sell free lifetime credit card.
This offer sounds very good and you find the limit of their credit card as per your expenses and there are no annual fees for it too. But friends, it is very difficult and it is always opposite to what you are told. The only difference can be that someone is charging more and someone is charging less.
If you take a credit card after hearing such things, from the same time 5 types of charges are levied on you by the credit card company about which you do not even have an idea.
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Banks do not give information about these charges to their credit card holders
Everyone tells you about cashback, reward points, discounts and many other types of offers on using credit card but they do not give you information about the hidden fees and charges of your credit card.
In such a situation, we have brought this post for you, after reading which you can know which are those 5 charges which are levied on your credit card which you do not even know about. So let us know about those 5 credit card charges,
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Annual fees
These are the charges that are levied every year which every credit card holder has to pay every year. These charges can range from Rs 1000 to Rs 5000; some bigger cards may have higher fees. Although some credit cards do not charge any fees for the first year, you have to pay annual fees every year thereafter.
Transaction Charges
If you use your credit card for any foreign transaction or withdraw money from your credit card using your ATM, then these charges are levied on it which range from 2% to 4% per transaction.
Late Payment Fee
If you do not pay your bill on time using your credit card, then it is inevitable that you will be charged a late payment fee. Credit card late payment fees depend on each card and can range from Rs 500 to Rs 1,000 and can also affect your credit score.
In such a case, if you use a credit card, it will be beneficial for you to pay your payment fee before time.
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Minimum Payment Fee
If you spend whatever you have using your credit card and you pay only the minimum payment instead of paying the entire pending amount, then you start getting a hefty interest on your outstanding amount.
And this loan interest can be from 2% to 4% per month and along with the actual amount, interest also starts accruing. In such a case, it will be better for you to pay the money on time.
Cash Advance Fee
If you need cash and you withdraw cash from your ATM using your credit card, then you have to pay charges ranging from 2% to 5% and its interest is much higher than the interest of a normal loan.
In such a situation, withdrawing cash without any hassle, that too by using your credit card, can create a huge interest for you.
Let’s know how to avoid these 5 Credit Card Hidden Charges
Before taking a credit card, get complete information about its rules, regulations and the charges and fees applicable.
- Do not spend more than the limit of your credit card.
- Always pay your credit card bill on time.
- Use credit card only when it is very necessary.
- It is not right to use cash advance, do so only when it is very necessary.
- Compare your card with other credit cards on our website.
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10 FAQs about Credit Card Hidden Charges
Are there charges on lifetime free credit card?
Yes, sometimes there are cash advance charges and transaction charges on such credit cards.
Can the annual fees of credit card be waived?
Yes, some banks keep such conditions under which if the user spends at least 1 lakh rupees from credit card in a year, then that user does not have to pay annual fees.
Does late payment affect your credit card score?
Yes, not making payment on time can lower your credit card score and in such a situation, if you have to take a loan, you may face difficulty.
Is it beneficial to make minimum payment on credit card?
No, it only covers the interest on your credit card but your base amount remains the same.
Can I convert my credit card reward points into cash?
Such offers are provided by some credit cards, and their rules and regulations are also different.
Is it right to withdraw cash from credit card using ATM?
You should only withdraw cash from your credit card in case of extreme need as it attracts heavy charges and interest.
Can I check the charges on my credit card online?
Yes, you can check all the details by visiting your bank’s official website or their app.
Are credit card transaction charges applicable only on foreign transactions?
Mostly yes, but sometimes extra charges are levied on domestic services through some credit cards as well.
Do the charges also stop after you close your credit card?
Yes, but only after you have cleared all your balance charges.
We hope you like our article on “5 Credit Card Hidden Charges You Maybe Not Be Aware”. For more information about credit cards, please do check our other articles
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