Credit Card Hidden Charges: Along with the big cities of the country, the trend of credit cards has increased in small towns as well. If you use credit cards wisely then they are helpful in saving money.
However, there are some charges associated with these credit cards which are quite high. Usually the bankers do not tell this. People using credit cards should be aware of these charges.
Cash Advance Fee
Withdrawal of cash from a credit card is called cash advance. Many times, in haste, instead of debit card, there is a mistake of withdrawing cash from credit card as well. Credit card companies allow users to withdraw cash from ATM machines, but interest is high. There is no benefit of interest free credit period on cash advance i.e. the interest free grace period you get after shopping is not available in it. In this way, withdrawing cash from credit card can be heavy on your pocket.
Late Payment Fee
Late payment fee is generally levied on your outstanding balance when the minimum is not paid by the due date. Banks and credit card companies usually charge late payment fees based on the outstanding amount. Higher the bill amount higher will be the late fee.
Annual Maintenance Fee
Annual Maintenance Fee is the charge that you pay to the credit card companies to maintain your account. This fee is taken once a year. This fee varies on different cards. Many card companies do not charge any annual maintenance fee on credit cards.
Cash Processing Fee
Normally a cash processing fee is charged when you make your credit card payment in cash. Banks also allow you to make payments through other modes like net banking, check payment and mobile banking without any extra charges.
Reward Redemption Fee
The purpose of awarding reward points on a credit card is to encourage the customer to use the credit card. The bank gives different facilities to redeem the credit card’s reward points. Once you have accumulated reward points, you can redeem the same as per the convenience offered by the bank. But many charge for redeeming back rewards.
