Credit Card Alert: Beware Of Hidden Charges On Your Credit Card Usage

Pune, 6th July 2024: As the number of credit card users increases annually, many remain unaware of the hidden charges imposed by banks and companies. Whether in cities or villages, the convenience of credit cards has led to widespread adoption. However, these users often overlook various fees that can significantly impact their finances. This article sheds light on the hidden charges associated with credit cards, including joining fees, annual charges, finance charges, cash advance fees, surcharges, and forex markup fees.

The number of credit card users is growing every year, with an increasing trend seen not only in cities but also in villages. Many users, however, are unaware of the multiple charges imposed by banks or companies on their credit card usage. These charges can include joining fees, annual charges, finance charges, cash advance fees, surcharges, and forex markup fees. Understanding these charges is crucial for avoiding unnecessary costs.

Joining fees and annual charges are common with many credit cards. The joining fee is typically paid once, while the annual charge recurs every year. Some users confuse the joining fee with the annual charge. In some cases, the bank may waive the annual charge if the user exceeds a certain spending limit, which varies by bank and company.

Finance charges are imposed if users do not pay their full credit card bill. To avoid these charges, experts recommend paying the full bill rather than just the minimum amount. This practice can help users avoid accumulating high finance charges over time.

Cash advance fees are another hidden cost. These fees are charged when users withdraw cash from ATMs using their credit cards. Most banks impose a 2.5% fee on cash advances. To avoid this fee, users should refrain from using their credit cards for cash withdrawals.

Surcharges apply when using credit cards to purchase fuel. Banks or companies impose a fixed surcharge for refueling petrol or diesel, though some banks may refund this surcharge under certain conditions.

Lastly, forex markup fees are charged when users make payments abroad using their credit cards. This fee can be as high as 3.5% of the transaction amount. The rates vary between banks and companies, with some credit cards offering lower forex markup fees.

By understanding these hidden charges, credit card users can make more informed decisions and avoid unnecessary costs.