Credit cards may help make purchases and perhaps receive incentives. At the same time, they aid in developing your credit history. There is, however, no such thing as a “free credit card.” Credit cards, being a sort of borrowing, have a variety of terms and restrictions. Most of you are just concerned with the card’s annual fee, but there are various more credit card charges and fees to be aware of.
Different Credit Card Charges and Fees to be Aware
The Annual Maintenance Fee
This is commonly refer to as an “annual fee,” and is not a “hidden” payment. The annual fee is collect annually and varies depending on the card. Banks sometimes offer free credit card, which means there will be no joining or yearly fees on the card for a set amount of time or for the rest of your life.
Cash Advance Fee
You are assign a portion of your overall credit limit as a cash limit. You may withdraw this maximum amount from an ATM using your credit card. A cash withdrawal or cash advance is an expensive transaction that can cost up to 2.5% of the amount taken. Furthermore, many of you are unaware that interest is pay on cash advances from the day the transaction is made; the interest-free period does not apply to credit card cash withdrawals.
Depending on the type of credit card, you may or may not be permit to exceed the spending limit. Banks do not allow this for free; instead, they impose a substantial over-limit fee for such transactions. Most banks charge a minimum of Rs. 500, but it also depends on the amount by which you have exceeded your credit limit.
Late Payment Penalties
If you cannot pay the total outstanding balance on your credit card, banks allow you to pay a minimal amount. If you are unable to pay even a minimal amount, the bank will charge you a late payment fee. A fixed fee is asses base on your statement balance. Consider the late payment penalty related to HDFC Bank Credit Cards.
Rate of Interest (APR)
The Annual Percentage Rate (APR) levied on your credit card impacts your expenses, especially if you have an outstanding balance. This is why it might be tough to keep credit cards because their interest rates are the highest compare to other loans. However, this is only relevant if you do not pay the entire amount owed. For example, if the entire amount payable for the month is Rs. 15,000 and you opt to pay only Rs. 5,000, the remainder money (i.e. Rs.10,000) will be subject to yearly interest rates ranging from 33-42%.
All credit card transactions will be tax at the current rates in the nation, so keep that in mind. GST (now 18%) is charge on yearly fees, interest payments, and EMI processing costs.
How Do You Pay Your Credit Cards? Is It Available Online Or Offline?
What types of online credit card charges and their bill payment methods & procedures – online & offline? Today, the vast majority of credit card users choose to pay their bills using internet banking.
In numerous respects, paying credit card bills via online banking is preferable to alternative passes. It is easy and convenient. Mobile banking, auto-debit, electronic bill payments, debit cards, national automated clearing house, RTGS, IMPS, and NEFT are all options for online banking payments. Each of these online payment methods has its own set of benefits. Let’s look at how IMPS and NEFT function.
Net Banking Is Use To Pay Credit Card Bills Online.
Processing time for credit card payments. Instant (from the same bank’s savings account)
Using your net banking account is one of the simplest ways to pay credit card bills online. If you already have a savings account with the credit card company, you may simply register your credit card in your current net banking account and make the payment immediately.
Even if you don’t have a savings account with the card company, you may create an internet banking account for your credit card and make payments directly from it.
These are some of the credit card charges levied on all credit cards issued by all banks. You may also take advantage of minimal fees and charges to make the most of your credit card. A credit card with a low foreign exchange markup fee would be preferable for purchases on international websites or in a foreign country. It would be best if you aimed to maximise the value of your purchases by using a credit card that best matches your financial needs.