Do You Know Your Credit Card Well?

By - Paisafatafat Blog

  • 2017-09-13 10:01:46
  • Credit card

If you do not know the credit card you are purchasing very well, it will be as irritating as a chewing gum stuck to your shoe. So how to escape this sticky gum? Simple, by knowing its nature well! If you want to know your credit card, you should understand the fees and the penalties attached to it. Buying a credit card is good but knowing about its various fees betters your experience.

Let’s get straight to the FEES or CHARGES that help you know your credit card well:

  • When you purchase a credit card from a bank, it charges you with JOINING or ANNUAL FEES. You may not be charged these fees in the first year but you will be charged with the fees from the next year. The charges range from Rs 500 to Rs 3000 a year

 

  • INTEREST is charged on the money you borrow through your card. It will be somewhere close to 3%/month and 36%-38%/year

 

  • When you purchase a credit card, it comes with a credit limit. For instance, you have purchased a card with the credit limit of Rs 1 lakh, you need to spend within that limit. If you overspend, the lender will charge OVER THE LIMIT FEE which may start from Rs 500 and differ as per the rules of the lender

 

  • Paying your credit card dues on time is very important. Otherwise, late payment invites LATE FEES. If you take more than three months to pay the dues, you will end up paying the late fee

 

  • If you demand a duplicate copy of your monthly statements apart from the ones sent by the banks to your mailing address, the bank charges DUPLICATE STATEMENT FEES for the same

 

  • Trust us when we say that losing your credit card is also expensive. Yes. If you lose your credit card, you will be charged with CARD REPLACEMENT FEES and the amount differs from bank to bank

 

  • Paying your dues through ECS or cheque is a good idea; but if you do not have sufficient amount in your account, your ECS fails and cheque will bounce. If your signature on a cheque is different from the usual one, the cheque will not be cleared. In both the above situations, the bank will charge PAYMENT FAILURE FEES, say from Rs 300 to Rs 350 or more


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