Credit Card Charges That You Should Know About

A credit card purchase is an exciting milestone. However, it is important to be careful about the terms and conditions. While there are many benefits to a credit card, it is also important to remember that poor usage can cause financial stress and lead you to being financially insecure. Credit Card Charges. 

We have created a list of credit card fees that you should know before you apply for a new card.

Credit Card Charges That You Should Know About

What are the Credit Card Hidden Fees?

Here is a list of credit card fees that you may be subject to when you purchase a credit card.

  • Annual Maintenance Fees – Also called an ‘annual fee’ or ‘annual maintenance charge’, annual maintenance costs are only charged once per year. The amount of annual maintenance charged varies from one card to the next. 
  • There are banks that offer credit cards for free. This means that they won’t charge annual maintenance fees to the user for a specific period.
  • Cash Advance Fee Every credit card holder has a maximum amount that they can withdraw using their credit card’s ATM. The cash limit is a portion of the credit limit. Cash withdrawals and cash advances are subject to very high fees from banks, which can be as high as 2.5% of the amount withdrawn. 
  • The interest rate is calculated from the date the cash is withdrawn. This means there is no interest-free period for cash withdrawals.
  • Over-limit fee – Some banks will allow credit cardholders to spend more than their credit limit. This is not free. The bank will charge you a substantial fee. It is usually around Rs 500. 500 is the over-limit fee, which allows users to withdraw more than their credit limit.
  • Late payment fee If users fail to make their credit card payments on time, they have the option to pay a portion of the balance. The late payment fee is charged by banks if the user is unable to pay the minimum amount.
  • Annual Percentage rate The interest rate, or Annual Percentage Rate (APR), is what banks charge when users fail to pay their total credit card bill. The APR on credit card bills is higher than any other type of loan.
  • Goods and Services Tax – All credit card holders must pay GST for credit card transactions. GST is charged on the annual fee, interest payments, and processing fees on EMIs. The current rate is 18%.
  • Foreign Currency Stamp-up Fee Credit cards are widely accepted around the world, but there are still fees that must be paid for foreign transactions. This is known as the Foreign Currency Mark-up fee. The fee is usually a fixed percentage of the total transaction amount and may vary from credit card to credit card.

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How do you get your first credit card?

If you are purchasing your first credit card, it is important to be more cautious about all credit card charges. This is a list of things you should do when getting your first credit card. Credit Card Charges. 

DOs DON’Ts
Credit score can be improved by effective usage Credit score can be severely affected by improper usage
You can keep your credit card safe Fraudulent transactions and misuse of your credit card could result in you losing your credit card.
You can use your credit card for emergency expenses Credit cards are a way to borrow money.
To earn reward points, buy the card you need. You should keep an eye on the offers on your credit card, such as the discounts and rewards.
You must pay your bills on time Late payments will result in high interest rates

To Conclude

Credit cards can have many hidden costs. You might be disappointed later if you don’t know about the credit card charges. Learn about any additional expenses you might have to pay later. 

There may be an annual fee or additional charges for foreign transactions, late payments of bills, interest rates, cash withdrawals, and other charges. These charges may not be obvious when you first get a card.

There are some charges that all banks will charge for credit cards. However, some banks waive a few of these charges. Users can leverage the low fees and make the most out of their credit cards by taking advantage of them. 

It is important to read all terms and conditions of your new credit card in order to choose the card that is right for you.

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Credit Card Charges Also Ask

What are the three things you need to be aware of about your account statement from a credit card?

Credit Card Statement

  • Summary of Activity in the Account. 
  • Payment Information. 
  • Notice of Late Payment. 
  • Minimum Payment Warning. 
  • Notification of changes to Your Interest Rates. 
  • Important Modifications to your Account Terms. 
  • Transactions. 
  • Transactions Fees.

What is the most important thing to be aware of about credit cards?

Things You Need to be aware of about every credit card in Your wallet

  • The Card Issuer as well as Processing Network. Processing Network. 
  • A Yearly Fee as well as Month in Which It will be charged. 
  • The Interest Rates for the transactions you make. 
  • The penalty for late payment. 
  • The credit Limit as well as the Penalty for exceeding It. 
  • Your Credit Balance and available credit.

What happens when a credit card is invoiced?

During the billing cycle, any credits, purchases fees, financing charges are charged to your account , and then subtract or added to your account balance. At the conclusion of the billing cycle, you will be invoiced for all charges that remain unpaid and charges incurred in the course of your billing.

How do you evaluate your credit card statement?

How to Review the contents of your Credit Card Statement

  1. Deadline for Payment. The most important item on your statement for credit cards is due date. 
  2. Minimum Amount Due. 
  3. Total Outstanding. 
  4. Credit Limits. 
  5. Balance of Reward Points. 
  6. Summary of Account. 
  7. Transaction Details.

Credit Card Charges video