Credit Card: Important Things to Know! insurancevlog

Looking to buy a new credit card? This means that you must know the details of the credit card fees. Credit card holders should also be aware of the fees charged on credit cards. You can see about that here.

Credit card!

Credit cards are used to a great extent to the extent that there is no one who does not have a credit card. Credit cards are one of the most important tools for users to manage their daily expenses. Credit cards have become one of the most common methods of payment in urban areas. Credit cards play a vital role in purchasing the goods we need online and in direct sales. But with good credit, you might find exactly what you need. Be aware of the fees charged.

Credit Card: Important Things to Know! insurancevlog

Financial Fees!

This credit fee will be charged to all credit card holders. This will vary from bank to bank. Similarly, these fees vary depending on the type of credit card in a bank. There is a set fee for each credit card. This interest will only accrue to you if you do not pay the balance on the credit card in full. Failure to do so will result in a 23 to 49 percent charge depending on the amount. Similarly, even if you keep a credit card at an ATM, you will still be charged.

Annual maintenance fee!

Many of us have received such a call from a bank. “We offer you a free credit card.” This means that the bank will cancel the maintenance fee for the first year of the credit card you purchase. But from the second year you have to pay the maintenance fee. This annual fee is not a hidden fee. The annual fee is charged once a year. The amount will vary for each credit card. So before you buy a credit card you should check in advance whether it is maintenance free for the first year or its entire life.

Payment fee!

You can also withdraw money from an ATM machine with a credit card. But most people do not use it because it costs more. Interest is calculated and charged from the time you withdraw money from the credit card. Even up to 2.5 percent of the money you withdraw at an ATM will be charged. This is why no one keeps credit cards and often withdraws money at ATMs. Keep in mind that credit card finance rates can be up to 49.36 percent per year depending on your card.

Late payment!

Banks charge a minimum of Rs. Late payment carries a hefty fine. Minimum Due or Minimum Amount is calculated as 5% of your total outstanding amount. But, maybe if you buy something in EMI with a credit card or spend more than the credit limit you will be charged even more fines. Failure to repay the minimum amount due on the due date will result in a maximum charge of up to Rs. 1,300.

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Maximum limit fee!

If you use more than the limit set for your credit card it will be charged. If you spend a rupee more or thousands more than the limit, you will have to pay for it. It charges a minimum of Rs.500. Most banks charge 2.5 percent more than the limit. Banks also charge a foreign currency mark-up fee of 1.99 per cent to 3.55 per cent for using credit cards for overseas transactions online and offline.

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