Complete Guide on Credit Card Charges | AU Small Finance Bank
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Different types of Credit Card charges

    With great spending power comes the great responsibility of managing Credit Card charges. Once you get a Credit Card, you get the freedom to buy anything and pay later, but at the same, you also have to ensure that Credit Card charges are not eating into your funds.

    Different banks and financial institutions offer different types of Credit Cards. As much as you put in a lot of effort in knowing the benefits, it is equally important to know the charges that a bank may levy on a Credit Card. So, let’s take a look at it.


    Types of Credit Card charges

    Listed below in this article are the major types of Credit Card charges you must know about.


    1. Rate of interest

    Using a Credit Card, you can spend the money available as per your credit limit and pay it back before the due date. In case, you can’t pay the total amount by the due date; you are charged Credit Card interest on the outstanding dues as well as on all the new transactions.

    Read More: How is Credit Card Interest Calculated?


    2. Penalty charges

    In case, the payment for your Credit Card bill is due for over 60 days, you are charged with something called penalty interest or Credit Card overdue interest as levied by your Credit Card company. It is also called a late fee for Credit Cards and is charged on the outstanding bill amount.


    3. Annual fees

    Popularly known as annual maintenance charges, annual fees are not hidden charges. It is charged once a year and the amount can vary from card company to card company. In case you are offered a free Credit Card with no joining or annual fee for a certain period of time or lifetime, you won’t have to pay any annual fees.


    4. International charges

    Credit Card companies often advertise that their cards are globally accepted but do not reveal that there is a cost associated with it. You are charged extra fees for foreign transactions, which is also called a foreign currency mark-up fee. It is usually charged as a percentage of the transaction amount and can differ from one card to another.


    5. ATM withdrawal charges

    Using your Credit Card, you can withdraw money from ATMs up to your permissible cash limit. But you will be required to pay a cash advance fee that is calculated in accordance with the amount of money withdrawn.


    6. Over-limit fee

    Depending on the type of Credit Card you choose, you are assigned a particular credit limit. If you spend using your Credit Card beyond the limit, your bank will charge you an over-limit fee of around 2.5% on the over-limit amount.


    7. Late payment charges

    If you do not pay your outstanding billing amount, your bank notifies you to pay the minimum amount. And if you do not pay the minimum amount, almost all banks charge Credit Card late payment charges.


    Key Takeaways:

    • Most fees and charges like the ones listed above are applicable on all types of Credit Cards offered by different banks in India.
    • Try to manage your Credit Card fees and charges so that you can make the most of your Credit Card. For instance, if your use is to make purchases in a foreign country or on foreign websites, buy a Credit Card with a low foreign exchange mark-up fee.
    • A Credit Card will be beneficial when you understand how to maximise the value of your spending while meeting your financial requirements.

    Are you looking to apply for a Credit Card? AU Small Finance Bank offers various Credit Cards, including AU Zenith Credit Card, AU Vetta Credit Card, AU Altura Plus Credit Card, AU Altura Credit Card and AU LIT Credit Card (India’s first customizable Credit Card).

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