At present, the number of people using credit cards in the country is increasing day by day. However, many people get their credit cards activated but they are unaware of the charges. You have to pay a lot of charges on the credit card, which you may not be aware of properly.
Today we are going to tell you how companies and banks charge you different amounts for each charge and we are going to give you all the details about the charges you may have to pay. If you have activated your credit card, then it is very important for you to keep these charges in mind.
Annual Maintenance And Joining Fee Charges
This is a charge that is levied on every credit card whenever you apply for a new credit card. Although some banks make the joining fee and maintenance charge free for the first year, but from the next year onwards, you have to pay the maintenance charge of your credit card every year.
Interest Rate
When your credit card bill is generated, it shows the total amount due and the minimum amount due. Many people pay only the minimum amount, however, by doing this you can get caught in a debt trap because the credit card company charges you 2 to 4 percent interest every month on the remaining amount.
Cash Advance Fees
This charge is mainly activated by companies and banks, then it is levied when you withdraw money from any ATM using your credit card, then this charge is imposed on you.
Petrol Pump Surcharges
If someone is a card user and he does not know that he buys petrol or diesel through credit card and he has to pay surcharge, then he is making a big mistake, if you are buying petrol and diesel, then you have to pay a charge on this as well.
Forex Mark Up Fee
If you transact within the country or abroad or use a credit card for that, then the companies activate this charge.
Card Replacement Fee
If your card gets stolen or lost or you want to replace your Credit Card, then in such a condition, the company charges you a fee for issuing a replacement card.
Over Limit Fee
If you exhaust the prescribed limit of your credit card, then the bank or the credit card companies can charge you an over limit fee for this transaction.
GST
GST of 18 per cent is levied on any transaction made by credit card.
Late payment charge
If you do not pay even the minimum amount before the due date, the credit card company also charges you a late payment charge.
Know Before Applying for a Credit Card in 2025
Using a credit card correctly makes it easier to manage your expenses and also helps you build a good credit score. But, unnecessary spending can lead to a huge bill. Therefore, before getting a card, evaluate your financial situation properly and check the updated information from the bank’s official website.
Conclusion
If you use your credit card properly and pay your full bill on time, then you should not worry too much. However, you should definitely know about some hidden charges that are charged from you. If you have any question regarding this post, then you can tell us by commenting in the comment box given below. Your feedback and suggestions are welcome as always. Thank you.
