Mumbai. Everyone must have come across that almost all banks are offering credit cards to their customers. Most of the credit card users think that the credit card facility is provided free of cost by the banks. Bank employees also often tell the customers about the reward points and some other attractive offers given on the credit card. But do not consider it necessary to discuss the charges on the use of the credit card.

Charges are hidden

Before taking a credit card, you should understand that if you use it, then it will cost money from your pocket. Bank is not providing this facility to you free of cost. Therefore, a cheap credit card does not cost you cheap and is not free at all. It seems free because you do not know about the charges on it. It is worth noting that some charges are fixed and they are levied, but some charges are also applicable due to the carelessness of the customer.

Annual Fee

The rate of annual fee varies from bank to bank as many banks do not even charge an annual charge. Therefore, before taking a credit card, it should be seen that the bank from which you are taking the credit card is not taking an annual charge on it. If the bank continues to collect the charge, then its policy should be such that after spending up to a certain limit, it will return the money of the annual fee. If the bank is taking annual charges and it is not even returning it, then you should take a credit card only in case you need it very much.

... interest will be charged

If you shop with a credit card, then you do not have to pay any interest till the billing date. However, this rule does not apply if you withdraw money from a credit card. From the day you withdraw money from the credit card, the bank starts charging interest on that amount. In such a situation, keep in mind that until all the roads are closed, do not withdraw cash from the credit cards, because banks charge huge interest on cash withdrawal.

Interest on arrears

The bank does not charge any interest from the customers who make the payment till the due date. But, if the credit card purchase amount is not paid till the due date, then banks charge interest on it. Even paying the minimum due cannot save the customer from interest. The rate of interest can be up to 40 percent per annum.

surcharge

Nowadays many people take diesel-petrol with a credit card. Banks levy surcharge on taking fuel. However, most of the banks give this information at the time of giving credit card and also refund the surcharge. But there is a limit to the refund as well. Therefore, while taking a credit card, complete information related to refund and surcharge should be taken from the bank.