6 Hidden Credit Card Charges That You Must Be Aware Of

The credit cards act as a financial backup to meet your extra expenses, i.e., planned or unplanned when you run out of money in your account or to meet financial contingencies. The good thing about credit cards is that you have to pay zero interest fee on your credits if you pay back on time. Nowadays, Credit cards have become everyone’s part of life as it gives you much more financial freedom to live your life your way without much worry about your finance.

Credit card is a must have by every working individual, and one should also know how to escape the hassles like being asked for credit card information again and again, by using https://creditcardgenerator.one/. Credit Card information isn’t worth giving away every single time, especially when you know how expensive it can get for you.

Once you own a Credit Card, you have to pay an annual or the renewal fee, which varies from bank to bank, which typically ranges between 500 to 5000 rupees. But apart from annual charges and some known charges, there are certain hidden charges which go unnoticed, and we are not aware of. Here we are going to discuss 6 hidden credit card charges that you must be mindful of :

1.   Hidden Interest Charges –

Each month, when you receive your credit card bills, you will see that it contains the total bill amount that you took as credit last month or earlier and also the minimum amount that you have to pay this month, which is less than the total bill amount. Now the thing is that by looking at the minimum amount of price we tend to pay only that by thinking that it’s a facility given to us to pay back the rest amount later or next month.

But the reality behind this minimum amount scheme is that you have to pay interest for the rest of the amount which you are not spending this month, and it will automatically be added in your next bill without your consent. The interest may vary from 2% to 4% per month depending upon the credit card agency and will be added to your bills every month, and the process goes on every month.

2.   GST –

All credit card transactions include goods and services tax for sure as per the GST laws in vogue. You may not be aware of this, but it will be charged for all of your transactions as per the rates applicable (at present, it is 18%). It will be added to your bill, which is required to be paid.

3.   Late Payment Fee –

Every month, there is a due date to pay your credit card bills, and once you miss that deadline, there will be a late fee charged, which you have to pay while making your bill payment. The new fee is a fixed amount which you have to pay and not any interest, but once you miss the due date, this amount is necessary to be paid along with the bill.

4.   Advance cash fee –

You can use credit cards to withdraw cash from ATMs. Still, it’s not cost-effective as here while withdrawing money, you have to pay an advance cash fee, which is an interest of 2.5% from the day of withdrawal so that it will be added to your credit card bill and you have to pay that interest along with the withdrawn amount. Hence to save this additional burden, efforts should be made to carry out cashless transactions as it will keep your advance cash fee.

5.   Foreign Transactions –

You may use your credit card to make international payments also, but every facility comes at a cost, and you have to pay for it. So when you make international payments form your credit card, you are required to pay an additional fee depending upon the transaction amount. A percentage of the transaction amount is to be paid as a Foreign transaction fee and will be added to your overall credit amount, which you have to pay later.

6.   Exceeded Limit Charges –

Your credit card comes with a specific fixed limit, i.e., The maximum transaction you can carry out in the entire month or till the payment of bills. Sometimes we forget about this limit and exceed this limit to meet additional expenses, and here is the next hidden charge called exceeded limit charge, which you have to pay when you cross the limit. These charges vary from bank to bank and range from 500 to 1000 rupees.

Conclusion

Hence these were the top 6 hidden credit card charges that you must be aware of. As most of us are not aware of these charges and even it is possible that you have heard about these charges for the first time, but you must be mindful of them.

As once you are aware of these charges, you could save your money to be wasted after paying all these charges by keeping an eye over them. Having a credit card in the present scenario is quite good as it will help you meet emergency fund requirements or your additional expenses. But knowing about the hidden charges could also save a tremendous amount of money in your credit card bills every month.

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