Many people in India check credit card fees and charges before applying for credit cards because it is an expense for cardholder. Nowadays credit card become primary method of payment because the cards enable them to make purchases and pay for services without the need to carry cash. However, the use of credit cards comes with the duty of properly managing one's finances, which includes paying the various fees and interest rates that are associated with credit card use. It is essential to have a solid understanding of these fees and charges in order to effectively manage your credit card spending. This article will demystify the fees and charges associated with using a credit card in India and provide you with all the information you require to successfully manage your credit card spending.
The cost incurred each year for using a credit card is referred to as the annual fee. It is the sum of money that the credit card issuer expects to be paid by the cardholder for the right to use their card. The card issuer and the type of card both have an impact on the annual fee that must be paid. There are credit cards that do not have an annual fee, while others have very high annual fees. When picking out a credit card, giving careful consideration to the annual fee is quite necessary.
| Card Name | Annual Fee |
|---|---|
| Axis Bank Ace Credit Card | Rs 499 |
| Flipkart Axis Bank Credit Card | Rs 500 |
| HSBC Smart Value Credit Card | Rs 499 |
| HDFC Freedom Credit card | Rs 500 |
| American Express SmartEarn Credit Card | Rs 495 |
You will be subject to a fee known as a cash advance fee if you use your credit card to withdraw cash from a cash machine (ATM). The cost is typically expressed as a percentage of the total amount withdrawn, and it is added on top of any interest that is accrued on the amount. Because the cash advance cost is typically greater than the interest rate that is imposed on purchases, obtaining cash through this method can be quite pricey.
| Card Name | ATM Withdrawal Charges |
|---|---|
| HDFC Bank Credit Card | Minimum of Rs 500 |
| Axis Bank Credit Card | Minimum of Rs 250 |
| SBI Bank Credit Card | Minimum of Rs 300 |
| IndusInd Bank Credit Card | Minimum of Rs 300 |
| Kotak Mahindra Bank Credit Card | Minimum of Rs 300 |
The overlimit fee is charged when you exceed the credit limit on your credit card. The fee is usually a fixed amount, and it is in addition to the interest charged on the amount. It is important to manage your credit card usage to avoid exceeding your credit limit and incurring the overlimit fee.
| Card Name | Overlimit Fee |
|---|---|
| Axis Bank Neo Credit Card | 2.5 % on the over limit amount |
| Yatra SBI Credit Card | 2.5 % on the over limit amount |
| IndusInd Bank Platinum Aura Edge Credit Card | 2.5 % on the over limit amount minimum Rs 500 |
| HDFC Platinum Times Credit Card | 2.5 % on the over limit amount minimum Rs 450 |
| IDFC First Select Credit Card | 2.5 % on the over limit amount |
Late payment fees are assessed to your credit card account if you do not make at least the required minimum payment by the day it is due. In most cases, the fees are expressed as a percentage of the total amount still owed, and they are assessed in addition to any interest that may be accrued on the balance. The fees associated with late payments can add up rapidly, making it more difficult to pay off the debt on your credit card.
| Card Name | Late Payment Charges |
|---|---|
| Bank of Baroda Prime Credit Card | Minimum Rs 100 Maximum Rs 1300 |
| HDFC Bank Millennia Credit Card | |
| IDBI Aspire Platinum | Minimum Rs 100 Maximum Rs 750 |
| Axis Bank Insta Easy Credit Card | Minimum Rs 100 Maximum Rs 700 |
| Yatra SBI Card | Minimum - 400 Maximum - 1300 |
The interest rate, which may also be referred to as the Annual Percentage Rate (APR), is the rate that is applied to any debt that remains outstanding on your credit card. The amount of interest charged will differ from one sort of credit card to another, as well as from one cardholder to another's creditworthiness. It is critical that you have a solid understanding of the interest rate that is charged on your credit card as well as the formula that is used to determine it.
| Card Name | Interest Rate Charges |
|---|---|
| Bank of Baroda ICAI Exclusive Credit Card | 3.49% monthly, 41.88% annually |
| IndusInd Intermiles Voyage Amex Credit Card | 46% annually |
| Axis Bank Privilege Easy Credit Card | 3.4% per month |
| Bajaj Finserv Insta EMI Credit Card | 3.5% per month |
| Axis Bank MyZone Credit Card | 3.6% per month |
The Goods and Services Tax, sometimes known as the GST, is a tax that is applied to the fees and charges that are involved with making purchases using a credit card. The Goods and Services Tax (GST) is calculated using a consistent percentage of the total fees and charges. When determining the overall cost of using your credit card, it is essential to take into account the Goods and Services Tax (GST).
| Card Name | GST Charges |
|---|---|
| IndianOil Axis Bank Credit card | As per government norms |
| SBI Card Elite | 18% |
| ICICI Bank Visa Signature Credit Card | |
| HDFC Bharat Cashback Credit Card | |
| HSBC Visa Platinum Credit Card |
The foreign currency markup fee is assessed when a credit card is used for foreign currency transactions. The cost is often a percentage of the transaction value and is imposed in addition to the card issuer's exchange rate. The foreign currency markup fee can quickly accumulate, making it crucial to consider when making international purchases with a credit card.
| Card Name | Foreign currency markup fee |
|---|---|
| SBI Card Elite | 1.99% fees on the transaction value |
| HDFC Regalia Credit Card | 2% fees on the transaction value |
| Axis Bank Vistara Infinite Credit Card | 3.5 % fees on the transaction value |
| IDFC First Wealth Credit Card | 1.55% of the fees |
| HDFC Diners Club Privileged Credit Card | 2% fees on the transaction value |
The balance transfer fee is charged when you transfer a balance from one credit card to another. The fee is usually a percentage of the transferred balance, and it is in addition to the interest charged on the amount. It is important to consider the balance transfer fee when deciding whether to transfer a balance from one credit card to another.
| Card Name | Balanced Transfer Fee |
|---|---|
| HDFC Infinia Credit Card | 1% of balance transfer |
| ICICI Bank Platinum Chip Credit Card | 1.25% of balance transfer |
| HSBC Visa Platinum Credit Card | 1% of balance transfer |
| SBI SimplyClick Credit Card | 0- 1.7% balance transfer fees |
| IDBI Royal Signature Credit Card | 1.5% of balance transfer |
The returned payment fee is charged when a payment made on a credit card is returned due to insufficient funds or other reasons. The fee is usually a fixed amount, and it is in addition to the late payment charges and interest charged on the amount. It is important to ensure that there are sufficient funds in your account to cover any credit card payments to avoid incurring the returned payment fee.
| Card Name | Returned Payment Fee |
|---|---|
| HDFC Bank Titanium Credit Card | 2% of payment amount |
| Axis Bank Select Credit Card | |
| ICICI Bank Platinum identity Credit Card | |
| Bank of Baroda Assured Credit Card | 2% or Rs 300 minimum |
| SBI SimpySave Credit Card | 2% of payment amount |
A lost card fee is assessed when a credit card is lost or stolen and a replacement card is issued. In addition to any other fees and charges associated with the credit card, this fee is often a predetermined amount. It is crucial to report a lost or stolen credit card immediately to prevent incurring additional fees.
| Card Name | Lost Card Charges |
|---|---|
| Flipkart Axis Bank Credit Card | Nil |
| Amazon Pay ICICI Credit Card | Rs 100 |
| HDFC Moneyback Credit Card | Rs 100 |
| Kotak Fortune Gold Credit Card | Rs 100 |
| IndusInd Nexxt Credit Card | Rs 100 |
Add on credit card is a card which is additional issued with a primary credit card. It is also known as Supplementary Card. The card is issued so parents, children and spouse can used same credit card. Most of the bank is offering add on card for free. Every bank has decided their limit to provide add on credit to the cardholder.
| Card Name | Add on Card Charges |
|---|---|
| Air India SBI Signature Credit Card | Nil |
| Axis Bank Ace Credit Card | |
| IndusInd Legend Credit Card | |
| HSBC Cashback Credit Card | |
| Citi Rewards Credit Card |
The majority of credit cards in India do not charge a monthly fee to its cardholders. Nonetheless, depending on the credit card issuer as well as the type of card, there is a possibility that some credit cards will impose a monthly fee. Before applying for a credit card, it is absolutely necessary to read the terms and conditions of the card in order to gain an understanding of the fees and charges that are linked with the card.
It is necessary to correctly monitor your usage of credit cards in order to prevent incurring charges on those cards. This includes avoiding exceeding your credit limit, making payments on time, and using your credit card in a responsible manner. It is also essential to select a credit card that does not impose an annual fee and has a reasonable interest rate charge.
The cardholder is responsible for paying any costs associated with their credit card. In most cases, the fees are deducted from the remaining balance on the credit card or charged to the account of the cardholder. When using a credit card, it is essential to take into account the associated fees and charges in order to prevent accruing further debt.
Fees associated with credit cards are figured out by taking into account both the nature of the fee and the total amount that is assessed. For instance, the interest rate that is applied to a credit card balance is determined by combining the APR with the current balance on the card. The amount that is withdrawn and the percentage that is charged are both used in the calculation of the cash advance fee. If you want to efficiently manage your credit card spending, you need to have a solid understanding of how the fees associated with credit cards are computed.
