There are a lot of charges on the credit card you have been using and you might be unaware of these charges. In this blog, we will be discussing various charges on your credit card.
Some banks and credit card companies charge you a joining fee for issuing a credit card. Some companies will issue credit cards free of cost to attract customers. Apart from joining fees, you will also be charged annual fees. The amount charged, varies from company to company. As a promotional offer, some companies waive off annual fees for one year. After the completion of one year, they will start charging you annual fees.
If you don't pay your credit card bill on time, you will be charged late payment fees over and above the interest charged on your bill. Late payment charge will either be a fixed sum or a certain percentage of the outstanding balance with a minimum and maximum threshold. Even this charges vary from one credit card Company to other.
The Credit card company will charge you if you withdraw money from the ATM using your credit card. This is over and above the regular interest of around 2.95% a month. Moreover, there will be no interest-free period if you withdraw cash using your credit card.
Credit limit is a maximum amount you can spend using your credit card. Credit limit is fixed based on your income. In case you spend more than the credit limit, you will be charged an extra fee by your credit card company.
In case you pay your credit card bill by cheque and it bounces, you will be charged fee for dishonored cheques. Also, if you have made this payment after the due date or very close to the due date, you must bear the late payment fees and a monthly interest on the outstanding amount.