Credit cards are generally used for making various kinds of purchases. Apart from that, if you can use the right credit card, it can offer you the best reward points. Besides, a credit card can help you build your credit history.
There happens to be nothing like a free credit card. Every type of credit card brings in a lot of terms and conditions. Most users tend to look at the credit card’s annual fee. But there are various credit card fees that one should keep in mind while indulging in a credit card.
Annual maintenance charge
It is not a hidden charge. The annual maintenance charge is popularly known as the annual fee, and it is charged once a year. The amount of this charge depends upon one bank to another. Sometimes the bank offers credit cards for free, which means that the credit card holder need not pay an annual fee or joining fee.
Benefits of having a credit card without annual fees
The credit card that comes without annual fees offers a variety of rewards and perks. One did not have to pay the annual maintenance charges with such a card. With any regular credit card, the points and rewards would be higher. You can enjoy some savings with credit cards that come without annual fees.
You can also compare the features of some of these credit cards. While you compare, you should always look for hidden clauses. There may be cases where you need to spend a higher amount in any particular month or period to get the waiver on your annual maintenance charges. Hence, you should always look for every aspect of your credit card before signing up for it.
Why should you not own a credit card without any annual fees?
You are looking for a lifetime free credit card whenever you are getting a credit card without annual maintenance fees. But with time, if the issuer seeks that the credit card is not making any profit, it can be discontinued. Some credit cards contain hidden clauses that allow the credit card issuer to change any terms and conditions for a particular financial product. In such cases, the annual fee for the credit card may not be waived off.
Moreover, if you tend to find any Asterix near the features or benefits of the credit card, then you should understand that the credit card consists of hidden terms and conditions. The ideal choice of a credit card depends upon the user’s financial profile. Also, the eligibility, credit score, or existing debt comes into consideration. Credit cards that come with nil annual fees are best if you want to save.
To make the right choice, you need to check your financial profile, credit score, debt, and credit card eligibility. In some cases, a regular credit card will enable you to save more money. With the Bajaj Finserv RBL Bank SuperCard, you have a chance of saving Rs. 55000. You may also withdraw money from the ATM.
Other Credit card fees to consider-
Late payment charges
If you cannot pay the whole outstanding amount, the bank will provide you the option to pay the minimum amount. In case if the credit card holder cannot pay the minimum amount, then the bank will charge a late payment fee.
As per the prevailing rates of the country, the credit card holder needs to pay the amount of GST on every transaction they make. The user should also keep in mind the processing of credit card fees and interest with regard to the GST.
These are the charges that are applicable for every kind of credit card. One can also leverage low charges that help a person make the most from their credit card. The money-back credit card tends to be a relief while one maximizes the spending amount.