Regardless of who the provider is, all credit cards come with charges as it's a necessary part of Credit Card packages. In order to make the best use of the card, understand which charges you should focus upon.
Basis the card you own and use, charges are levied.
Your Credit Card agreement will determine the rate of APR. The APR is calculated as a yearly interest rate that is then applied to your outstanding balance each month.
APR can be different for different uses. Like APR for interest will vary from APR for balance transfer.
Credit cards usually come with an annual fee. The American Express Platinum Reserve Credit Card charges Rs. 5,000 but Cardholders enjoy a range of benefits including exclusive dining experiences, golf course entry and airport lounge access.
If used with discretion, credit cards are an excellent resource for financial freedom. But often people fear ending up in debt. With careful financial management one can avoid paying extra charges.
Paying in full ensures that you won't have to pay interest on the money borrowed. It may not be always possible, but it's the the best way to avoid penalty. Try setting up a direct Debit to repay your Card balance in full.
If you can't pay the full balance then try to pay as much as possible. Meeting your minimum monthly payment ensures you don't incur penalty fees, although you will still accrue interest on the remaining balance in the following month. Paying off more than the minimum each month reduces the interest you are charged.
Electronic payments are very convenient, besides paying over the phone also requires one to pay additional processing charges.
Set yourself a reminder to make your Credit Card payments every month else you are charged penalty for defaulting.
If you spend above your credit limit, you are charged an "over-limit" fee. This can compromise your rewards and your ability to use the Card in future by affecting your Credit rating.
If you are certain that you will always have sufficient money to repay, then a Charge Card is a useful tool to manage your finances. Charge Cards do not allow you to have credit or debt. The outstanding balance on a Charge Card is repaid, in full, at the end of every month.
To find the perfect balance of charges and rewards, when choosing a Credit Card you should look at how you are going to use it and which rewards appeal to you the most. Remember, low Credit Card fees are normally reserved for introductory offers.