7 different charges are levied on credit cards, even after deducting money, you do not know here


Credit card is a very useful thing. Even if there is no money in the pocket, the purchase is done. Money can be paid after one and a half months. With this, credit history is also created on purchase, with the help of which it is easy to take loan later. You must have seen that bank employees often sell free credit cards to customers by saying. But do you know that there are many conditions with free credit cards, which the customer does not know about before.

Later when the charge has to be paid, he regrets it. Most of the customers see only the annual fee of the credit card and do not look at the remaining charges. But there are many such charges which are attached to the card but they are not known even after deducting them. It is important to know about such charges.

There are 7 different charges in this list. These include annual maintenance charge, cash advance fee, over limit fee, late payment charges, interest rate, GST and foreign currency mark up fee.

1-  Annual Maintenance Charge


This charge is popularly known as Annual Fee Annual Maintenance Charge. This is not a hidden charge, that is, banks tell about this charge on priority. This fee is charged once a year. The amount of this fee is different on different cards. Sometimes banks talk about free annual fees. That is, no money is taken in the name of joining fee or annual fee. However, this is only for a certain period of time.


2- Cash Advance Fee


Part of your credit card limit is given as a cash limit cash advance fee. This is the amount that you can withdraw from the ATM. Taking advantage of the cash limit from a credit card or withdrawing money from an ATM is an expensive deal as the bank may have to pay up to 2.5 more than the amount withdrawn. In this, the customers also do not know that as soon as the money is withdrawn from the card, the rate of interest becomes applicable. In this situation, the facility of rebate of interest is not available. Most banks charge Rs 100 to Rs 500 on cash withdrawal.


3-Over limit fee


It depends on the type of credit card you have. Credit limit is available with every card, in which some banks allow spending more than that, some do not. If a cardholder spends more than the limit, then banks charge huge interest on it. In most banks, the minimum limit is Rs 500. This over limit fee depends on your credit card and bank.

4- Late Payment Charges


A facility is also available with the credit card bill that if you cannot pay the full outstanding amount, then there is a waiver of depositing the minimum amount. If a customer is not able to pay even the minimum amount, then banks charge a late payment fee on him. The late fee is determined by looking at the statement balance of the credit card. If the HDFC credit card statement balance is between 100-500, then the late payment fee is Rs 100. If the statement balance is more than Rs 10,001 then the late payment fee is Rs 750.


5-Interest Rate This is


called Annual Percentage Rate or APR. APR affects your credit card bill. If there is an overdue payment left with the card, then the APR leads to huge losses. That is why the credit card is called a debt trap because the rate of interest on it is many times higher than other loans. But this happens only if you do not submit the total outstanding bill. For example, if the credit card bill is 15,000 but you have paid only 5000, then the remaining 10,000 may attract 33-42% interest.


6-All theGST


transactions made with the credit card are taxed under GST. Therefore, before buying the goods, find out about the tax and its slab. Along with this, GST is levied at the rate of 18 percent on the annual fee, interest payment and processing fee paid on EMI.


7-Foreign Currency Mark Up Fee


Banks often say that there is no charge on international transactions with credit cards, but it does not happen. Banks charge foreign currency mark up fee on international transactions in the form of foreign currency mark up fee. This fee may vary from bank to bank. Under this, some part of the transaction amount is charged. Some banks charge 2 percent of the transaction and some up to 3.5 percent. It is important to know about all these charges because if the bank deducts money on the credit card, then you should know it in advance.

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