Such charges are incurred on withdrawing cash from credit card, know all the things before applying
New Delhi: Getting a credit card is a great deal for banks. But if you do not know how to use it then it can become a big headache for you. Actually, banks charge you 6 charges against the use of credit cards. Many of these charges are hidden. Especially if you withdraw cash from the card, you may have to pay a huge amount. That is why today we are going to tell you about all the charges on credit cards. After knowing that, you can use the card correctly.
Before making credit cards, know its fees, fees for Transaction to Cash
6 charges have to be paid for credit cards
Banks give facility to withdraw cash from credit card but it is not free. The bank charges up to 2.5% on the money you withdraw. The special thing is that if you withdraw money from the card, then you also have to pay immediate interest for it. Apart from this, banks charge interest even if you are late in credit card payment. This interest rate is very high. Although you can avoid this charge by paying the minimum amount, you will have to pay interest on the outstanding amount.
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Sometimes we withdraw more money than the limit of the card but for this the bank also takes an overdraft charge from you. However, less people know about this. GST is also payable on all credit card transactions. It is applicable according to the prescribed rates. Apart from GST, the bank also extras from you on petrol or railway tickets. To keep a card, you also have to pay an annual fee or renewal fee to the bank, although some cards are free.
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Know this before you withdraw cash from credit card, every time you withdraw cash, you have to pay advance charge or advance fee. This charge depends on the cash withdrawn. You will find this charge in your next month’s bill, which you will have to pay the installment. This is an extra charge, which increases the burden on your pocket.