Credit cards fees

Fees and Charges levied on Credit Card Every

credit card comes with some fees and charges. Yes, these charges can be avoided, but, it is important to know what fees and charges a credit card can have. Here’s the list- Annual fee - Every credit card has an annual maintenance fee applicable for one year, and cards that are offered for free, usually rebate first year’s maintenance fees. Interests - If you fail to pay the credit or borrowed amount in the grace period, your credited amount is subjected to interest decided upon earlier. Cost of overseas transactions - Every overseas transaction made by you is charged with certain fees, which is generally 3.5 % of the transaction amount. Cash withdrawal interest - If you ever withdraw cash from your credit card, this amount is charged with an interest, which is higher than the normal interest rate. Fees for overusing card limit - If you cross the limit of credit and still use your card, the bank charges you some fees for crossing the card limit even by Re 1. Fees for late payment - When you pay the bill within grace period there is no interest, and after that, you have to pay interest. However, if you don’t pay the credit amount for more than 90 days, you are charged late payment fee. Fees for card replacement - When you replace your card due to any underlying reasons, you have to pay fees for card replacement. Surcharges - If you have ever noticed, then every petrol bill transaction comes with an additional surcharge, which is either 2.5 % of the total credited amount or a flat rate of Rs 10 – Rs 25. Service tax - Every single transaction from your card carries a service tax.