Credit cards prove to be very helpful in times of financial crisis. In addition, it also gives an opportunity to make a purchase and reward. However, when banks give you a credit card, they say that it is free, but it is not, users should understand that there are some hidden charges associated with the card. If you use a credit card by knowing these charges, you will benefit. Know which charges you have to pay instead of a credit card.
Maintenance Charges: These are annual maintenance fees. Providing a free credit card only means that the opening fee and the annual charge have been removed and that too for a certain period of time.
Cash Advance Fee: Customers are also allowed to withdraw money from ATMs in their credit cards. However, banks also charge fees, which can be up to 2.5% of the amount to be withdrawn.
Late Payment Charge: The monthly credit card bill mentions the total amount, sometimes people pay the minimum amount. Most people pay the minimum amount, it can trap you in a debt quagmire. Banks charge interest charges on this.
Cash Advance Fee: Customers are also allowed to withdraw money from ATMs in their credit cards. However, banks also charge fees, which can be up to 2.5% of the amount to be withdrawn.
Overdraft Charge: The overdraft charge applies to the credit card when the cardholder borrows more than the limit of his card.
GST Charge: GST applies to all transactions arising out of credit cards, which are applicable according to the prescribed rates.
Surcharge: When a credit card is used for petrol or railway tickets, the percentage of transactions charges an additional charge.
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