Kunal Shah, founder and CEO of CRED, a fintech platform that manages credit cards, recently said that his platform has detected hidden charges and late fees worth Rs 11,000 crore. These charges have been levied last year, which shows that people are being very careless in using their credit cards. They are not seeing that many hidden charges are being imposed on them by the bank. Even many people are delaying the payment of their dues and paying late fees. If you are also a credit cardholder, then you should know which hidden charges are levied by the banks. Let us know about 5 such charges (5 Charges on Credit Cards).
1- Annual charge causes confusion
There are many such credit cards on which no annual charge is levied, but this charge is levied on most cards. Even if you get this card for free for the first time, then this charge will be levied from next year. However, most banks waive off the charges levied on the card after shopping beyond a regular limit. Many banks charge an annual charge even for the first time. In such a situation, while taking a credit card, understand well whether the annual charge is waived on the card or not and if it is waived, when will it be waived and how much will it be.
2- Interest levied on credit card dues
A major source of income for every credit card company is the interest levied on dues. Every month a credit card statement comes, in which a due amount is written, which has to be paid by a fixed date. If you delay paying it even by a day, then interest can be levied on all your due amounts at the rate of up to 36-48 percent per annum for the entire period. At the same time, many people get caught in the trap of minimum dues, they also have to pay a huge amount of interest. It is also important for you to understand what minimum due is and how to avoid getting caught in its trap.
3- Heavy charge is levied on withdrawing cash
While selling a credit card, the facility of withdrawing cash is also given in its feature. Some people think that this is very good. Remember, heavy interest starts being charged from the very first day on withdrawing cash from a credit card. Do not think that like shopping, you will get about a month’s time to return the cash. So keep one thing in mind that you should not withdraw cash from a credit card under any circumstances, even if you have to take a loan from the bank or have to ask for a loan.
4- Pay attention to the surcharge too
A surcharge has to be paid on filling fuel from a credit card. Although surcharge refund is available on most credit cards, but there are some conditions for that too. Surcharge is also available up to a certain limit. For example, a bank can say that the surcharge levied on a transaction of Rs 500 to Rs 5000 will be refunded. At the same time, only a surcharge of Rs 100, 200, 300 or a fixed limit every month will be refunded.
5- Charges levied on overseas transactions
It is a big feature of most credit cards that you can use them abroad as well. However, you need to keep in mind that overseas transaction charges are very hefty. So if you are planning to use a credit card abroad, then first ensure from your bank how much charge you will have to pay.
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