Credit card hidden charges: The phone rings, you pick up the phone and a voice comes from the other side, Sir, this credit card is being offered to you for lifetime, that too for free. The credit limit is also good. You will also be overjoyed. You will get trapped in the credit card trap and when you use it, you will understand that nothing is free. Overall, the matter is that as soon as the card comes in your pocket, the bank will charge you 5 charges. Customers are not aware of this information. And banks keep on cutting your pocket like this.
No one will tell how the charge will be levied?
Agents give information about discount and reward points on credit cards. Bank customer care also tells about this. But, hardly anyone tells which charges will be levied after taking the credit card. But, 5 such charges are definitely levied on the credit card, which no one even mentions.
Annual fee
This is the most common charge that is levied on your card every year. It can range from ₹1,000 to ₹5,000, depending on your card type. Some cards are free for the first year, but a fee is charged from the second year onwards.
Transaction charge
This charge is levied when you transact abroad or withdraw money from an ATM. This fee can range from 2% to 4%.
Late payment charge
This charge is levied if you do not pay your bill on time. This fee can range from ₹500 to ₹1,000. Late payment can also harm your credit score.
Minimum payment charge
This charge is levied if you do not pay your entire outstanding amount every month. This charge can range from 2% to 4%. The minimum payment only covers the interest. In such a situation, you can remain in debt.
Cash advance charge
This charge is levied when you withdraw money from an ATM. This charge can range from 2% to 5%. Interest is also charged on cash advance, which is higher than the interest charged on purchases.
What to do to avoid charges?
Compare the charges while choosing a credit card. Pay your bill on time. Do not spend more than your credit limit. Use cash advance as little as possible. Use your card only for big purchases.
Keep in mind
You can compare the charges levied on different credit cards by visiting the RBI website. It is advisable that you read all the charges and terms carefully before taking a credit card.
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