New Delhi, Business Desk. Credit card proves to be very helpful in times of financial crisis. Apart from this, it also provides an opportunity to shop and get rewards. However, when banks give you a credit card, they state that it is free, but it is not so, users should understand that there are some hidden charges associated with the card. Knowing these charges, you will get benefit if you use a credit card. Know which charges you have to pay against the credit card.
Maintenance Charges: These are annual maintenance fees. Providing credit cards for free means that only joining fees and annual charges have been removed and that too for a fixed period.
Cash Advance Fee : Customers are given the facility to withdraw money from ATMs even in their credit cards. However, banks also charge a fee that can be up to 2.5 percent of the amount withdrawn.
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Late Payment Charge: Total monthly amount is mentioned in the credit card monthly bill, many times people pay minimum amount. Most people pay the minimum amount, this can get you into a mire of debt. Banks charge an interest charge on this.
Overdraft Charge: The overdraft charge is applied to the credit card when the card holder takes a loan in excess of his card limit.
GST Charge : GST is applicable on all types of credit card transactions, which are applicable at the prescribed rates.
Surcharge : When a credit card is used for petrol or railway tickets, there is an additional charge on the transaction fee.
