Cost Guide

Credit Card Charges & Fees Complete Guide

Understand all charges, hidden costs, and how to minimize credit card fees

Types of Credit Card Charges

Annual Fee (Membership Fee)

₹0 - ₹50,000

Fee charged yearly just to keep the card active

Example: Premium cards charge ₹5,000-50,000 annually; Basic cards may be free

How to Avoid: Waive with minimum annual spending (typically ₹2-5 lakh)

Interest / Finance Charge

18-40% p.a.

Charged on unpaid balance if you don't pay full amount by due date

Example: ₹10,000 unpaid at 36% = ₹300/month interest

How to Avoid: Pay full balance before due date to get grace period

Late Payment Charge

₹100 - ₹500

Fine for paying bill after the due date

Example: Pay 3 days late = ₹200 penalty + interest on full balance

How to Avoid: Set payment reminders and enable auto-pay

Cash Withdrawal / Advance Fee

2-3% + GST

Fee for withdrawing cash from ATM using credit card

Example: Withdraw ₹10,000 = ₹300 fee + 18% GST = ₹354

How to Avoid: Use debit card for cash withdrawals instead

Balance Transfer Fee

1-3% + GST

Fee to transfer existing credit card debt to a new card

Example: Transfer ₹50,000 = ₹1,500 fee (3% + GST)

How to Avoid: Negotiate with bank for waiver on balance transfer

Additional Hidden Charges

Foreign Transaction Fee

Charged on purchases abroad

1-2% + GST

Fuel Surcharge

Extra fee on fuel pump transactions

0-1%

Duplicate Statement Fee

For requesting duplicate statements

₹50-100

Card Replacement Fee

If you lose or damage your card

₹100-500

Exceeding Credit Limit Fee

Overspending beyond limit

₹500-1,000

EMI Conversion Fee

Processing fee for converting to EMI

0-2%

Convenience Fee

At certain online platforms

1-2%

Cheque Bounce Fee

If linked cheque bounces

₹300-500

How to Minimize Credit Card Charges

✓Pay full balance before due date to avoid interest charges

✓Choose lifetime free cards or negotiate annual fee waiver

✓Avoid cash withdrawals - use debit card instead

✓Keep spending below credit limit to avoid over-limit fees

✓Monitor statements monthly for unauthorized charges

✓Don't use convenience features like EMI unless necessary

✓Set payment reminders to avoid late payment fees

✓Compare cards before applying - some have 0% processing fees

Find a No-Fee Credit Card

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