What are Common Charges in Credit Cards in India

Every credit card that's out there comes with all sorts of fees that can end up costing you they'll charge you if you're spending too much and they'll charge you for spending too little 

The RBI has taken steps to protect consumers from enormous rates such as inactivity fees or unreasonable penalty fees but still, credit cards seem to come up with some sort of method of taking more of your money 

so you have to understand the different fees that come with your credit card there are 

• Annual Fee
• Application and Setup fee
• Cash Withdrawal Fee
• Over the Limit Fee
• Balance Transfer Fee
• Late Fee
• Returned check fee

Annual fees 

Most credit card companies charge a yearly fee for owning and using their credit cards to avoid this you can look for a new credit card with no annual fee or ask the company to waive the fee which happens more often than you think. 

Application and Setup Fee 

Most of the time these are one-time fees that are usually given out to people with poor credit also sometimes referred to as processing fees these charges are limited to 25% of your initial credit limit under the credit card, ability responsibility and Disclosure Act of 2009.

Cash Withdrawal Fee

The cash withdrawal vias process is either a flat fee or a percentage of this fee are added anytime withdraw cash using your credit card the danger is that cash advance fees and interest fees are typically higher than those from normal purchases so cash withdraw should be used only in emergencies. 

Over the Limit Fee

Thanks to the card act credit card users don't have to opt in to permit their credit cards to spend more than the limit additionally the levy fee may not be more than the amount spent, for example, exceeding the limit by 50,000 cannot incur a fee of more than Rs. 5,000.

Balance Transfer Fee

There are balance transfer fees and these are usually used to save money on interest, but these deals aren't usually free and companies can charge a certain percentage or flat rate fee per transfer 

Late Fee

Occur when you fail to pay your minimum balance on time the late fee will soon follow although the penalty is captain either your minimum balance up to $25 or $35 if you've had another late payment in the past six months it's best just to avoid this and prevent the fee by paying your bill on time.

Returned check fee

Is another easily preventable fee the return check fee is charged when you try to pay your credit card balance from a bank account with insufficient funds companies impose a charge for each bounced payment just do yourself a favour always read the fine print of your credit card policy to avoid unexpected charges it will only help you in the end to avoid all these excessive fees.

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