Credit Card Tips: Companies never give this information about credit cards, it has a direct impact on customers’ pockets…

Try to never spend more than the credit limit. Apply for only those cards that meet your needs. Companies charge a fixed fee for duplicate statements. First The thing that you should keep in mind is that never think that you get the credit card unconditionally.

The first thing is that you should never think that there are no charges on credit cards. There are many types of charges and conditions about which the customer is not given any information during the initial conversation. Therefore, there is a need to delve deeper into what the actual charges and terms of the credit card are. It is important to ensure this before signing the card application form.

Open and hidden costs
Annual fee and other expenses: Credit card companies usually attract customers by offering a free credit card by waiving the annual fee for the first year. However, this offer expires after one year, and after that most companies start charging an annual fee of Rs 1,000 to Rs 3,000 depending on the type of card and credit limit.

Compound interest rates
If payment is not made by the last date of bill submission, interest at the rate of 1.11 percent to four percent per month is charged on the outstanding amount. Although this interest rate may not seem high, when you look at it on an annual basis it amounts to 27 to 48%.

Fees for exceeding overdraft limit
This charge is levied if a customer spends more than his credit limit. Usually, it is a specific percentage of the amount spent and its minimum and maximum limits are fixed.

Late payment fee
In addition to interest rates, companies also charge late payment fees when you delay paying a bill. Either its amount is fixed or it is a specific percentage of the outstanding amount. This fee varies for different credit cards.

Duplicate statement charges
Most credit card companies charge a fixed fee for duplicate statements of credit card transactions.

Foreign currency transactions
In the case of transactions done across the country, first of all, the foreign currency is converted into Indian Rupees at the rate decided by the network infrastructure provider (Master/Visa), and a certain percentage of the transaction value is converted into Indian Rupees. The percentage is charged as a fee.

Cash withdrawal charges
If cash is withdrawn from the bank through a credit card under the credit limit, then a fee is charged to the customers which is a specific percentage of the withdrawn amount.

Charges on petrol and train ticket purchases
When petrol and train tickets are purchased through credit cards, a certain percentage of the transaction amount is charged as a fee.

How to avoid hidden card charges?
One thing is certain if you use a credit card, you cannot avoid being charged some of the above-mentioned charges, but if you adopt the following measures, the burden of charges may be reduced to some extent.
1. Before applying for a credit card, research thoroughly which credit card is suitable for you.
2. Apply only for cards that meet your needs.
3. Understand the initial rates of credit cards. Also, see what fees are associated with using the credit card. Read and understand the terms and conditions thoroughly. For this, you can take the help of the booklet sent along with the credit card.
4. Shop wisely through credit cards. It would be better to avoid unnecessary expenses.
5. If you have not been able to pay the credit card dues, then at least keep paying the actual amount of interest on time.
6. Don’t just look at the bill amount on your credit card statement, also see if any unnecessary charges have been added.
7. Try never to spend more than your credit limit.

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