CREDIT CARD CHARGES 

10 CREDIT CARD CHARGES THAT COULD DRAIN YOUR WALLET

Published By Misha Oberoi | 05 Jul, 2024
Credit cards can levy charges like joining and renewal fee, late payment fee, cash advance fee, and more. People should be conscious of such expenses before applying for a particular credit card. 
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Such credit card costs are highlighted in the Most Important Terms and Conditions Document (MITC).
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Here's a list of 10 different charges that can come with credit cards:
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Joining and annual renewal fee

Majority of cards demand a joining fee. Paying the fee can reap benefits like reward points, brand gift vouchers, program memerships, etc. The renewal fee is charged each year on the date the card was issued. 
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Late payment fee

The late fee is levied if you fail to pay the minimum amount required by the due date. Some banks calculate this fee based on the outstanding balance slab-wise. This is the total amount due minus the amount paid by the due date. 
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Finance charges 

Finance charges are applied if you don't pay the outstanding balance in full. These are primarily levied in the range of 1.99 to 3.75% per month. 
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Cash advance fee

This fee is applicable when you withdraw cash from the ATM using your credit card. It is applied as a specific percentage of the withdrawn amount or a flat amount, depending on which is higher. 
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Reward redemption fee 

Banks can charge reward redemption fee when you redeem reward points for certain items. 
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Cash repayment fee

When you pay any credit card amount due by cash, banks charge a cash repayment fee. 
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Card replacement fee

Pretty self-explanatory - banks charge a replacement fee when your card is stolen or lost. 
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Surcharge

Banks impose a surcharge on purchases like fuel, rent, railway tickets, etc. The fuel surcharge of 1% is common. 
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Payment return charges

Sometimes your payments through cheque, auto-pay, etc. are returned due to insufficient funds or other reasons. Banks levy payment return charges on such returns. 
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Overlimit fees

Overlimit fee is levied when your credit card surpasses the credit limit in a billing cycle. 
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