Understanding Credit Card Fees: Are You Charged Before Activation?

General
1

Have you ever received a call or message asking you to pay the fee before activating your credit card? Here’s everything you need to know about credit card activation and fees.

What is Credit Card Activation?

  • Credit card activation is required to verify your identity and confirm the card’s possession.
  • Most banks don’t charge activation fees.
  • What’s not charged: Banks usually charge joining or annual fees after the card is activated.

Types of Fees Associated with Credit Cards

  1. Joining Fee:

    • One-time fee when you first receive the card.
    • Premium cards have higher joining fees.

  2. Annual Fee:

    • Charged yearly as long as you use the card.
    • Some banks waive it if conditions are met.

  3. Late Payment Fees:

    • Charged if you miss your payment deadline.

  4. Cash Advance Fees:

    • Fees for withdrawing cash using your credit card.

  5. Interest Rates:

    • If the balance isn’t paid on time, interest is charged (12%-36%).

  6. Forex Markup Fee:

    • Fees for international transactions or currency conversions.

Do You Get Charged Before Activating Your Card?

  • Generally, no. You won’t be charged fees before activation.
  • Caution: Unsolicited cards (those you didn’t apply for) might have fees that aren’t immediately clear.

How to Activate Your Credit Card?

  • Online: Via the bank’s website or mobile app.
  • Customer Care: Call the bank’s service number.
  • ATM Activation: Some banks offer this method.
  • OTP Verification: Always done via OTP sent to your registered mobile number.

What Happens If You Don’t Activate Your Card?

  • If you don’t activate within 30 days, the card may be deactivated.
  • Consequences: You won’t be able to use the card until activated.

What Are Unsolicited Credit Cards?

  • These are issued to you without your request.
  • Often come with pre-approved status but be cautious about hidden charges.

In Conclusion:

  • Activation doesn’t incur charges. However, fees like joining or annual fees are charged after activation.
  • Always verify unsolicited credit cards before using them to avoid unexpected costs.

If you’re ever unsure about a fee, make sure to contact your bank to clarify before activating the card!