Shopping sprees, spontaneous solo trips or even a fun night out with friends, your Credit Card can be your most reliable companion! Not only do Credit Cards offer convenience; they also provide rewards and can be used in emergencies. However, many don’t quite understand the charges and fees that accompany a Credit Card before applying for one. This knowledge not only helps in making informed choices but also in avoiding unexpected costs. Read on to explore the different types of credit card charges applicable in India and how Axis Bank's offerings can be a smart choice for your financial needs.
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Don’t be surprised! Credit Card Charges explained
Here’s an easy guide to understand Credit Card charges:
| Charge Type | Percentage Range / Flat Fee | Explanation |
|---|---|---|
| Annual Fee | 0% - 3% | Yearly expense for using the credit card. |
| ATM Withdrawal Fee | ₹300 - ₹500 per transaction | Fee for cash withdrawal using a credit card at ATMs. |
| Cash Advance Fee | 2.5% - 3.5% | Charges for cash withdrawal using the credit card, applied to the withdrawn amount. |
| Late Payment Fee | ₹100 - ₹1,000 | Applied when payment is made after the due date. |
| Over-limit Fee | 2% - 3% | Charged if expenses exceed the credit limit. |
| Balance Transfer Fee | 1% - 2% | For transferring the balance from another card. |
| Foreign Transaction Fee | 1.5% - 3.5% | Applied to transactions in foreign currencies. |
| Interest Rate (APR) | 24% - 49% per annum | Annual percentage of interest on unpaid credit balances. |
| EMI Conversion Charges | 1% - 2% | Fee for converting purchases into EMIs. |
| Card Replacement Fee | ₹100 - ₹250 | Charged for a new card in case of loss or damage. |
| Duplicate Statement Fee | ₹50 - ₹100 | Fee for issuing a duplicate statement beyond the free limit. |
| Credit Card Processing Fees | 1% - 3% | Applied to various transactions based on card terms. Also known as Credit Card Transaction Fees. |
| Overdraft Fee | ₹500 - ₹1,000 per instance | Charged for using the overdraft facility on a credit card. |
| Dishonour of ECS Charges / Cheque Bouncing | ₹100 - ₹500 per instance | Charged when an Electronic Clearing Service (ECS) or cheque for credit card payment is dishonoured. |
The perfect Credit Card is waiting for you
Tips to manage your Credit Cards effectively:
- Monitor your spending by keeping an eye on your credit card usage. This helps you avoid going over your credit limit and save on over-limit fees.
- Always pay at least the minimum amount due before the payment deadline to avoid late payment fees and high interest rates.
- Use cash advances sparingly as they attract high cash advance fees and interest rates from the day of withdrawal. Cash advances refer to the cash you can withdraw from an ATM on your credit card.
- Be mindful of foreign transaction fees when using your card abroad or for overseas online purchases.
- Review your card's fee structure and consider if the benefits outweigh the cost as some credit cards charge annual fees.
- Be aware of any associated fees and interest rates after the introductory period, especially if you are considering a balance transfer
Conclusion
Remember, a credit card can be a powerful financial tool when used responsibly. So, choose an Axis Bank Credit Card for its many benefits, but also stay mindful of the charges to make the most of your financial journey.
Disclaimer: This article is intended solely for informational purposes. The views expressed in this article are personal. Axis Bank and/or the author shall not be liable for any direct or indirect loss or liability incurred by the reader arising from reliance on the content herein. Readers are advised to consult a qualified financial advisor before making any financial decisions. Axis Bank does not endorse or guarantee the accuracy of any third-party content or links included in this article.
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