Credit Card: Banks do not provide much information about the fees associated with credit card use. Only when charges are brought against you do you learn about it. To avoid such a situation, provide detailed information before applying for a credit card.
If you also receive a call claiming that the bank is offering you a free credit card, understand that the executive is lying to you. In reality, many such charges are levied on credit cards for which neither the bank nor the caller provides information. Often, the caller only mentions the reward points and discounts available on shopping, and you are only interested after listening to them. Tell us about those credit card charges that no one tells you about.
An annual fee
This fee varies depending on the bank. Some banks do not charge this fee, but they do require you to shop for a certain amount of money each year. Some banks waive the annual fee when you link any bill to the card. Do some research before applying for a credit card. Because the executive always claims that the credit card is completely free. However, he does not reveal the terms hidden behind it.
Arrears interest
Every bank charges interest. This fee is imposed if the payment is not received by the due date. Some people believe that paying the minimum amount will not incur interest. However, this is not the case. You avoid penalties by paying the minimum amount, but you must pay a hefty interest rate of 40 to 42 percent. As a result, try to pay the bill two to three days before the due date.
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Cash withdrawal fees
Every credit card has a spending limit. If you withdraw cash using a credit card, keep in mind that as soon as you withdraw money, the bank begins charging exorbitant fees. When using the card, you must pay the money without any charges until the due date. When withdrawing cash, however, this is not the case. If possible, avoid withdrawing cash from your credit card in this situation. When using the card, you must pay the money without any charges until the due date. When withdrawing cash, however, this is not the case. If possible, avoid withdrawing cash from your credit card in this situation.
Take note of the surcharge
Almost all banks charge a surcharge for credit card payments for gasoline and diesel. Some banks refund this fee, while others do not. However, the refund has a fixed limit. If you exceed that limit, this charge will not be refunded. For example, the monthly limit for filling up with petrol and diesel on Axis Bank’s My Loan card is Rs 4,000.
Foreign Transaction Fee
Banks only say that you can do transactions abroad with this credit card when they offer it. However, no one mentions the fees for using a credit card abroad. If you are also planning to travel abroad, make sure that the bank from which you have a credit card charges a fee for using it.
