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Here are the 6 Hidden Credit Card Charges You Didn't Know About 2019?

This is 6 credit card fees you may not know near .

  

Credit cards are the calculate both as a boon and a curse in this age. Having the credit card can show to be financially helpful. Still, if it is not used wisely, it can be clog debt with the additional charges that can affect your financial investments. Credit card activities such as the repayment of loans form an important part of a credit score and help an individual build his CIBIL score. CIBIL Score helps in the getting bank loan and big credit easily.

 

Still, what most people expect is that credit cards do not come for the free. There are the hidden charges on your credit card that banks usually don't mention. Experts hint that these little-known charges need to be understood to avoid penalties, extra payment charges and hefty interest rates.

A few disparate charges that may appeal to your credit card: 

  

There are the hidden charges on your credit card that banks normally do not mention. Experts hint that these little-known charges need to be understood to avoid penalties, extra payment charges and hefty interest rates. 

1. Annual Maintenance Fee

 

Credit cards come with the joining fee and an annual maintenance fee. Still, if you are offered a credit card for free, the bank waives off the joining fee and annual fee for the certain period. Nowadays most of the banks waive the joining fee for the first year itself and appeal it from the second year along. Some banks waive these charges even if you expend up to a pre-specified limit.

2. Interest Charges

           

Banks normally charge an interest rate of the 3-4 per cent per month on the amount due, and the annual interest rate generally ranges from 36 to 48 per cent, which is quite high. Credit cards offer an interest-free period of 45-50 days to pay off all expenses. If the payment is not made within that time, an interest rate is charged. After passing by the interest-free period, if the full payment is not made on time, banks levy interest charges to be borne by the cardholder.

3. ATM Withdrawal Charge

  

Though cardholders have the choice to withdraw money from the ATMs using a credit card, such transactions come with the additional charges. About the 2.5 per cent of cash withdrawn from ATMs is withdrawn as fees. Immediate interest on cash is also compounded from the date of withdrawal and ranges from the 36 to 48 per cent per annum. Hence, experts suggest that cash must be withdrawn from the ATMs using credit cards only in case of emergency.

4. Late Payment Fee

If a person does not pay the minimum due amount on time, the bank charges an additional late payment fee. Post the due date after the payment is made, these charges are the related. These charges, however, are the flat fee and are not connected to the interest charged. Along with the late payment charges, the credit score of the card holder also gets affected, so always try to avoid it. 

5. जीएसटी Goods and Services Tax India

  

As per the current GST rates, all credit card transactions are topic to GST. Service tax was the levied at 15 percent on credit card linked services before the implementation of GST. Now, after GST, there has been an increase of 3 per cent and now it is at 18 per cent.

6.   O / D  overdraft fee.

              

When the credit card holder exceeds their monthly credit limit, overdraft charges connected to the credit card appeal.

Source : india.gov.in  Finance Taxes