Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • Hidden Charges in Credit Card

    It is said that nothing in life is free. But everyone of us clamour to procure products and services that come with the term ‘free’. However, there are a few terms and conditions that come with each of these ‘free products’. Similarly if anyone is enticed into purchasing a credit card for free, they must understand that there a few fees and charges attached to it and in effect, are not completely free. Most of these additional charges may not be revealed upfront to customers but will be charged nevertheless.

    Some Fees and Charges Applicable to Credit Card

    Prior to acquiring credit cards, customers must first be aware of the following fees and charges that may be applicable.

    Annual Maintenance Charge

    This is the annual maintenance fee that is applicable for a credit card. In most cases, when individuals are offered ‘free’ credit cards, it may mean that the joining fee and the annual charge has been waived for a period of one year but may be applicable from the following year. Prior to procuring the card, customers must confirm if their annual maintenance charge is waived for a year or for life.

    Interest Charge

    Credit card bill for every month will show the total amount that is due and the minimum amount that is payable. Many individuals choose to only pay the minimum payable amount assuming that the rest can be paid later. But this practise will only result in their falling into a debt trap. Also, 2% to 4% interest rate is charged per month on this remaining amount. The monthly rate of interest is generally annualised to arrive at an APR or annualised percentage rate of 36% to 38%, which is very high. In addition to the nominal rate of interest, this annualised percentage rate can result in quite a burden for the individual. Hence, all potential credit card holders will have to strive to pay their bills in full and not just the minimum amount due.

    GST

    All credit card transactions are subject to GST as per prevailing GST laws.

    Late Payment Charges

    In case a cardholder does not pay his/her due in time, additional charges will be levied which is called the late payment charge. This is applicable when the customer defaults in their payment of monthly credit card due post the due date. This is a flat fee amount and is not dependent on the interest charges.

    Overdraft Charges

    When customer exceeds the monthly credit limit that is applicable on their credit card, these charges are applicable.

    Foreign Transaction Charges

    In case customers make an overseas transaction using their credit cards, foreign transaction charges are levied. This is around 3% to 5% of the overseas transaction and is then converted to INR based on the exchange rate depending on the date of transaction.

    Charges on purchasing petrol

    Purchasing rail tickets or petrol using credit cards attracts additional charges. This is a set percentage of the amount that is spent.

    Outstation cheque charges

    In case individuals use outstation cheques to settle credit card bills, additional charges would be levied. This is a fixed percentage based on the slab within which the bill amount falls under.

    Dishonour of ECS Charges/Cheque Bouncing

    In case a cheque that has been issued for the payment of credit card bills bounces, additional charges will be applicable.

    Lost Card Charges

    In case a customer has lost his/her credit card, a new card will be issued once penalty charges have been paid.

    ATM Withdrawal Charges

    Customers have the option of withdrawing money from the ATM using their credit card. However, the transaction charges applicable would be around 2.5% of the cash advance. In addition to this, interest on the cash from the date of withdrawal will be due and this interest cost may vary from 24% to 46% per year.

    Therefore, although credit cards come with numerous advantages, customers must ensure that they understand all the hidden charges that come with it, prior to availing one.

    *GST rate of 18% applicable for all financial services effective July 1, 2017

      

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

    Credit Cards Reviews

    • SBI Cards Credit Card
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      I am holding the credit card of SBI CARD they have offered with the satisfactory credit limit also the card has the good offers with this card which is satisfactory with this card. The payment reflects very quick with the card also there is a EMI option.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 19, 2019
    • Bank Bazaar Credit Card
      "USERFRIENDLY PORTAL TO USE"
      0.5 4.0/5 "Great!"
      Bankbazaar.com it is the first time experience as i am using it without any hassle process. I prefer using it through the mobile application as the application is user friendly also it is convenient to access. The customer support and responsiveness is good.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 19, 2019
    • SBI Cards Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      SBI has benefit of balance transfer option which can be used for card payments and its converted into EMI for 3 or 6months. Earlier used platinum card which has 3K annual charge without knowing used 2 years requested for new card then given simply save credit card with Rs.500 annual fee but reversible. The helpline number get connects easily and proper response. The charges are normal 3.5%.
      Was this review helpful? 0
      , chennai
      Reviewed on May 19, 2019
    • SBI Cards Credit Card
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      There are no issues with the SBI CARDS where i am using it since from last few years. There are no charges applicable with this bank card for any of the hidden charges. The credit limit gives was satisfactory also the card is user friendly and convenient to access.
      Was this review helpful? 0
      , thane
      Reviewed on May 19, 2019
    • HDFC Bank Credit Card
      "NOT SATISFIED"
      0.5 1.0/5 "Really Bad"
      The credit limit is lesser and expecting for hike with this card where i am using it with the HDFC BANK, there is a EmI option is available, the billing date is 5 and they are debit delay and there are hidden charges are there. Using from last 2 years this card.
      Was this review helpful? 0
      , thane
      Reviewed on May 19, 2019
    • Bank Bazaar Credit Card
      "GOOD PORTAL TO USE"
      0.5 5.0/5 "Blown Away!"
      It is the first time experience with the Bankbazaar.com as i have been using it through the website as the portal is convenient and it is user friendly to access. The customer service is good and they are responsive also they are good.
      Was this review helpful? 0
      , thane
      Reviewed on May 19, 2019
    • Axis Bank Credit Card
      "Better card"
      0.5 3.0/5 "Satisfactory"
      I am using Axis Neo credit card and am satisfied with the credit limit of 1.20L. I have received the card in 2004 and am not using much. Its a life time free credit card. The customer service is good but they are not fulfilling customer requirement. The payment mode is online.
      Was this review helpful? 0
      , chennai
      Reviewed on May 19, 2019
    • Citibank Credit Card
      "BETTER"
      0.5 3.0/5 "Satisfactory"
      The documentation process was simple and easy to get the card with the CITIBANK. The credit limit is lesser with this credit card, it is a payable card for yearly once. I am getting no offers with this card and i have started using it from last few months.
      Was this review helpful? 0
      , thane
      Reviewed on May 19, 2019
    • HDFC Bank Credit Card
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I got a limit of 1.75L on my HDFC credit card and its a life time free. The services are superb and its a No.1 bank. I get online discounts during festival season. Its easy to understand terms and conditions, contacted the customer service which is toll number. I get immediate response and have another number but the procedure was lengthy to connect with the executive. There is no hidden charges.
      Was this review helpful? 0
      , chennai
      Reviewed on May 19, 2019
    • Citibank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      I have been using rewards card from Citi Bank for last 6 years. I get reward points for transactions, On spend of 100rupees=1point=0.25p where other bank conversion rate is high. The credit limit is low and annual charges waiver off is given.
      Was this review helpful? 0
      , chennai
      Reviewed on May 19, 2019
    • Bank Bazaar Credit Card
      "Better"
      0.5 4.0/5 "Great!"
      I have installed the mobile app of Bankbazaar.coma and am using the portal for long time to know some information which is easy to operate. I have applied the card for first time and the process is very much simple and convenient. Overall hassle free.
      Was this review helpful? 0
      , chennai
      Reviewed on May 19, 2019
    • American Express Credit Card
      "Need to increase the limit"
      0.5 4.0/5 "Great!"
      American Express is prompt in their card delivery, am using the card. The credit limit is low of 25K and need to increase the limit for higher level card. They are charging annual fee of 499 rupees. I got the first bill with annul fee+ GST and made it online.
      Was this review helpful? 0
      , chennai
      Reviewed on May 19, 2019
    • Bank Bazaar Credit Card
      "Good"
      0.5 5.0/5 "Blown Away!"
      I have taken the credit card for a first time with Bank Bazaar and its good. The customer service has contacted me and got a regular follow ups. I have used the mobile application which was simple to access. Overall it was good and satisfactory.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 19, 2019
    • IndusInd Bank Credit Card
      "Average"
      0.5 4.5/5 "Excellent!"
      I have received the credit card on time from Indusind Bank Ltd and I don't find any delay on their service. The credit limit is good for me. The annual fee is not there but need to pay joining fee for one time which is 1000 rupees. I have used the card once and the bill is generated. The payment mode is easy. It does not have an offer of buy one plus one movie ticket on bookmyshow.com basically the benefits are lesser.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 19, 2019
    • SBI Cards Credit Card
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      I am using the SBI CARD which is a FBB card where i get the good offers with the FBB purchase also i get the good offers in this card. the credit limit is lesser also it is not satisfactory. The customer support is good and they are responsive, it is a good banking.
      Was this review helpful? 0
      , kolkata
      Reviewed on May 19, 2019
    • SBI Cards Credit Card
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      I am using the credit card with the SBI CARDS where the card is payable card which is 800 rupees with this card. The application is easy and it is good to use the card also the website is also good with this bank. The payment option is good with this bank.
      Was this review helpful? 0
      , kolkata
      Reviewed on May 19, 2019
    • HSBC Bank Credit Card
      "AVERAGE"
      0.5 2.5/5 "Just OK"
      The card is not user friendly and not in fuel offers with the HSBC BANK, unable to change the pin with the ATM, i am getting offers with the book my show which is buy 1 get 1. Application is not good and it is slow and there is no ATM is available with this bank.
      Was this review helpful? 0
      , kolkata
      Reviewed on May 19, 2019
    • ICICI Bank Credit Card
      "Better "
      0.5 4.5/5 "Excellent!"
      I am using ICICI Credit card for last 3 years. I am happy with the credit limit and never gone for enhancement. They don't charge annual fee always. I got reward points and cash back offer for purchasing online. I get one movie ticket as free for every month. The customer care is very supportive. Once I tried EMI and the charges are little high.
      Was this review helpful? 0
      , mumbai
      Reviewed on May 19, 2019
    • Bank Bazaar Credit Card
      "CONVENIENT PORTAL TO USE"
      0.5 4.0/5 "Great!"
      It is the first time experience with the Bankbazaar.com as i am using it through the mobile application as the application is easy and user friendly to access. The customer service is good and they are responsive with this channel by explaining the details of the card.
      Was this review helpful? 0
      , kolkata
      Reviewed on May 19, 2019
    • YES Bank Credit Card
      "GOOD"
      0.5 5.0/5 "Blown Away!"
      It is with a life time free card so i have taken the card with the YES BANK. The documentation process was simple and easy to get the card with this bank. The credit limit is satisfactory and it is a free card. I am getting rewards points but not aware of the points.
      Was this review helpful? 0
      , kolkata
      Reviewed on May 19, 2019
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