Credit cards have become an indispensable part of our lives when it comes to fulfilling our financial needs. With the increasing popularity of credit cards, there has been a rise in the number of fees and charges associated with them. It is essential to understand the credit card fees and charges in India to make informed decisions while using them.
One of the most common fees associated with credit cards is the annual fee, which is levied by the card issuer for maintaining the card. The annual fee may vary depending on the credit card's type and the benefits it offers. Some credit cards may even waive off the annual fee if the cardholder meets certain criteria.
Another fee associated with credit cards is the interest charge, also known as finance charge. It is the fee charged on the outstanding balance on the card, and the rate may vary depending on the credit card's type and the payment history of the cardholder.
Overlimit fee is another charge that is levied if the cardholder exceeds the credit limit set by the card issuer. The overlimit fee may vary from one card issuer to another and can substantially increase the outstanding balance on the card.
Cash advance fee is another charge levied when the cardholder withdraws cash using the credit card. The cash advance fee may be a fixed percentage of the amount withdrawn or a fixed amount, depending on the issuer.
Late payment fee is another charge that is levied if the cardholder fails to pay the minimum amount due on time. The late payment fee may vary from one issuer to another and can substantially increase the outstanding balance on the card.