It is expensive to have credit cards
Banks charge many types of Charges
Banks get extra money for every transaction
One has to pay double interest on withdrawing cash
New Delhi: To make credit cards, you often get phone calls or you must have noticed that people also stand in malls and give you offers to make credit cards. Seeing them, it can be easily understood that getting our credit card is a great deal for banks. Now you have to understand how it benefits banks.
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Actually, banks take full hidden hidden charges instead of one-2, instead of using these cards, because of which they benefit but banks hide these charges from their customers. That is why today we are telling you about these credit card fees so that you become aware of the usage of your cards by knowing about them.
Maintenance Charges: Banks charge an annual maintenance fee in lieu of using a card. If banks talk about giving you a credit card in free, it means that only joining fees and annual charges have been removed and that too for a fixed tenure period.
Cash Advance Fee: Banks give customers the facility to withdraw cash from their credit card but it is not free. The bank charges up to 2.5 percent on the money you withdraw.
Credit Card Late Payment: Banks charge you interest when you are late in credit card payment, this interest rate is very high. Many times people pay the minimum amount but by doing so you can get caught in the debt quagmire. Banks charge interest on this.
Overdraft Charge: Banks offer their card holders the option to take loans higher than the card limit, but in return the overdraft charge is applied to the credit card.
GST Charge: GST is applicable on all credit card transactions which are applicable as per the prescribed rates.
Surcharge On Credit Card Transaction: When a credit card is used for petrol or railway tickets, you have to make an extra payment.
