1️. Annual Fees
Many credit cards come with annual fees that vary depending on the card type and benefits. Some issuers waive these fees if you meet a certain spending threshold. Make sure to check the annual fee structure and if it suits your financial needs.
2️. Cash Advance or Withdrawal Fee
Using your credit card to withdraw cash can be handy during emergencies but comes at a cost. Expect charges between 2.5% to 3% of the withdrawn amount. Additionally, cash advances attract interest rates between 24% to 46% annually, so it’s best to use this option sparingly!
3️. Late Payment Fee
Miss your due date? A flat late payment fee will be applied to your outstanding balance. This fee can increase with repeated delays and hurt your credit score. Stay on top of your payments to avoid penalties and protect your credit history.
4️. Over-Limit Fee
Exceed your credit limit, and you’ll likely face an over-limit fee. This fee varies from issuer to issuer, so it’s important to know your credit limit and stay within it to avoid extra costs.
5️. Foreign Transaction Fee
If you’re traveling or making international purchases, keep in mind that a foreign transaction fee of 3% to 5% of the total transaction amount may apply. Consider cards with zero forex markup if you frequently shop abroad or travel internationally.
6️. Outstation Cheque Fee
If you’re making credit card payments using an outstation cheque, there’s a fee involved. This fee is usually a fixed percentage based on the billing amount category of your payment.
7️. Fuel Surcharge
Fuel purchases made with credit cards usually attract a surcharge. However, some issuers waive this surcharge for transactions up to a certain limit, so be sure to check if your card offers this benefit.
Additional Hidden Charges
- Card Replacement Fees: If you lose your card, some issuers charge a fee for issuing a new one.
- Bounced Cheque Fees: If a cheque payment for your bill bounces, expect a penalty.
- Duplicate Bill Statement Fees: Some issuers charge for issuing duplicate statements upon request.
Being aware of these charges can help you manage your credit card responsibly and avoid unnecessary costs.