What are a few ways to avoid some credit card fees once you have a credit card

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What are a few ways to avoid some credit card fees once you have a credit card

A credit card is a very good personal banking solution for you to manage your expenses better. It not only helps you carry out cashless transactions but also earns you reward points and other benefits that you can redeem. But, whether you have a credit card or are planning to purchase one, it is important to understand the underlying charges and fees associated with it.

You might end up paying a huge amount for your credit card if you are unaware of these hidden fees since your bank might not disclose them at the time of issuing it. It is a good practice to understand the different types of fees that banks levy on your credit card to use it more responsibly.

Here is an overview of the different types of fees banks will levy on your card and how you can avoid paying them.

Cash Payment Fee: This is a fee charged by the bank if you make your credit card bill payment in cash by visiting your branch. A fixed fee of ₹100 is charged.
How to avoid: You can avoid this fee by paying your bill through your net banking facility.

Balance Transfer Fee: If you own multiple credit cards, you have the option of transferring the current outstanding credit in one credit card to another one with a lower rate of interest. But to facilitate this process banks charge you around 2%.
How to avoid: The best way to avoid this fee is to pay your outstanding credit amount with your current credit card itself.

Renewal and Annual Fee: When the credit card is issued to you by your bank, they charge you an annual fee along with the joining fee for the first year. In the subsequent years, you will be charged a renewal fee by the bank.
How to avoid: Purchase a card with a zero annual fee or check for an annual fee waiver clause while purchasing the card and ask the customer care to waive off this fee for you.

PaymentDishonour Fee: If the payment made for your credit card bill is dishonoured for various reasons like cheque bounce, insufficient balance and so on, your bank will levy this fee on your credit card.
How to avoid: The best way to avoid this fee is to ensure that you have sufficient funds in your account.

Limit Exceed Fee: This fee is charged if you have maxed out your credit card limit by overusing it to pay for your purchases.
How to avoid: The best solution to this issue is to avoid it completely. If it is not possible, then you can purchase another credit card to manage your finances better.

Miscellaneous Surcharges: If you use your credit card for paying for fuel, booking tickets and more, you will be charged a small amount by the bank for facilitating each of these payments.
How to avoid: You can either use credit cards that waive off such fee or other modes such as net banking, debit card payment and so on.

Before applying for online credit card and enjoying cashless transactions on the go, do thorough research about the different interest rates offered by banks. Also, ensure to ask your bank about the different types of fees they will levy once they issue you a credit card.

By Lena Burkut

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