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Monday, May 2, 2022

credit card : vardan ya abhishap

 Now are 6 Credit Card Charges You May Not Be Aware Of in 2022.


This is a list of 6 credit card fees you may not be aware of.

In this day and age, credit cards are seen as both a blessing and a curse. Having a credit card might be beneficial financially. However, if it is not utilised intelligently, it can clog debt with additional fees, which can have a negative impact on your financial investments. Credit card actions, such as loan repayment, are an important aspect of a credit score and aid in the development of a person's CIBIL score. The CIBIL Score facilitates the acquisition of bank loans and large amounts of credit.


Credit cards, on the other hand, are not free, as most people believe. Your credit card may have hidden charges that the bank does not disclose. Experts advise that these little-known fees should be understood in order to prevent fines, late fees, and high interest rates.


Several charges that may be applied to your credit card include:

Your credit card may have hidden charges that the bank does not disclose. Experts advise that these little-known fees should be understood in order to prevent fines, late fees, and high interest rates.


1. Fee for Annual Maintenance

A joining fee and an annual maintenance fee are charged on credit cards. If you are offered a credit card for free, the bank will forgo the application cost and yearly fee for a set period of time. Most banks nowadays waive the joining fee for the first year and charge it from the second year onwards. Some banks will waive these fees if you spend up to a certain amount.


2. Fees for Interest

Banks often charge a monthly interest rate of 3-4 percent on the amount owed, with an annual interest rate of 36 to 48 percent, which is fairly expensive. Credit cards provide a 45-50-day interest-free time to pay off any bills. An interest rate is charged if the payment is not made within the time frame. If the whole payment is not made on time after the interest-free period has expired, banks impose interest charges on the cardholder.


3. Fees for ATM withdrawals

Although cardholders can use their credit cards to withdraw money from ATMs, such transactions incur additional fees. Fees account for about 2.5 percent of all cash obtained from ATMs. Cash interest is compounded daily starting from the date of withdrawal and varies from 36 to 48 percent per year. As a result, experts advise that cash should only be withdrawn from ATMs with credit cards in an emergency.


4. Fee for Late Payment

The bank will levy an additional late payment fee if a client does not pay the minimum due amount on time. These fees apply after the payment has been paid after the due date. These fees, on the other hand, are a one-time price that is unrelated to the amount of interest paid. Along with late payment fees, the cardholder's credit score is also impacted, therefore try to prevent it wherever possible.


5. Goods and Services Tax (GST) in the India

All credit card transactions are subject to GST at the current rates. Prior to the advent of GST, credit card-related services were subject to a 15% service tax. Following the implementation of GST, there has been a 3% increase, bringing the total to 18%.


6. Overdraft fee (O/D).

When a credit card holder exceeds their monthly credit limit, the credit card is subject to overdraft fees.


Finance Taxes, India.gov.in, India.gov.in, India.gov.in, India.gov.in,

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