FREE credit card? Forget it! 10 charges bank representatives often hide from you

Credit Card Hidden Charges: Recently, Rajat received a credit card under special corporate offer from his company's banking partner. He was very happy with the proposed offers on the credit card. He did not have to pay any processing fees or annual fees. But, the very first statement gave him a big shock. There are several hidden credit card charges and rules. It may happen that bank officials fail to inform about these charges during the initial conversation. For this reason, it is very important to have information about the charges levied on the credit card before getting one.

1. Annual Fees and Other Charges

In order to lure customers, the companies provide the credit card for free in the first year for the annual fee waiver. However, this offer ends in a year. After that, the annual fee is charged from Rs 500 to Rs 3,000, according to the type and limit offered on the card. 

2. Revolving Interest Rates

A credit card user may end up paying interest at the rate of 1.99% to 4.00% every month if he/she fails to make payment by the due date. Even as this charge seems okay, when we convert it to an annualized percent rate (APR), it becomes 24% to 48%.

3. Fees over overdraft limit

This fee is collected from the customer when s/he surpasses the credit limit. 

4. Late Payment Charges

Credit card companies charge late payment fees on each payment made late by the customer. It can be a fixed amount or a fixed percentage of the outstanding amount.

5. Goods and Service Tax (GST)

GST is charged at 18% of the credit card fees, interest and other charges.

6. Outstation check fees

If the customer pays the credit card bill with an Outstation check, then a service fee is charged.

7. Fees on Duplicate Statement

Most credit card companies charge a certain amount on the issuance of duplicate statements.

8. Foreign Currency Transaction

Transaction in foreign exchange is converted into Indian currency based on the rate given by the Network Infrastructure Partner (Master / Visa). A certain percentage of this amount is collected as fee. Here also the minimum amount is fixed.

9. Cash Withdrawal Charges

A fee is charged even if cash is withdrawn with the credit card. This can be a fixed percentage of the amount of the transaction.

10- Fee on petrol and railway tickets

For the purchase of petrol and railway tickets by credit card, a certain fee is charged.