1. Did you know that even an inactive SBI credit card could charge you annual fees?
If you’ve ever applied for a credit card without fully understanding the fee structure, you might face unexpected charges. Here’s why this matters and how it could impact your credit score.
2. Why Do Inactive SBI Credit Cards Charge Annual Fees?
• Yes, SBI credit cards can still charge annual fees even if you haven’t activated or used them.
• These fees are often billed annually on your card’s billing cycle, regardless of usage.
• Some banks waive fees for hitting spending thresholds, but SBI typically requires the card to be active to waive fees.
3. The Financial Impact of Not Using Your Credit Card:
• Late Fees: If you forget to pay the annual fee, you might incur late payment charges.
• Credit Utilization Ratio: An unused card with fees could affect your available credit and utilization ratio.
• Account Closure: Prolonged inactivity might lead to the bank closing your account, reducing your total credit limit and potentially lowering your credit score.
4. How Non-Payment of Fees Impacts Your Credit Score
• Late Payment History: Missing payments affects your payment history — a key factor in your credit score.
• Higher Credit Utilization: Unpaid fees can increase your overall utilization ratio.
• Negative Account Status: Defaults stay on your credit report for up to 7 years, affecting future credit applications.
5. Tips to Manage Your SBI Credit Card Like a Pro:
• Understand the Fee Structure: Always read the terms and conditions before applying for any card.
• Set Payment Reminders: Use apps or calendar reminders to ensure you never miss a due date.
• Use the Card Occasionally: Small purchases can keep your card active and prevent unnecessary fees.
• Contact SBI Customer Service: Clarify any doubts about your charges or request a waiver if you’ve been charged incorrectly.
• Evaluate Your Cards Regularly: If a card no longer serves your needs, plan its closure strategically to minimize its impact on your credit score.
For More Details Visit SBI Credit Cards
6. RBI Guidelines on Inactive Cards:
The RBI mandates that credit cardholders must activate their cards after applying for and receiving them. Banks may close inactive cards after a period of non-usage. Stay informed and avoid unnecessary complications.
7. Final Thoughts:
Inactive credit cards can lead to unexpected fees and credit score drops if not managed properly. Be proactive: understand your card’s terms, keep track of fees, and make informed decisions about keeping or closing your cards.