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Hidden charges are lesser-known fees that gradually but quietly increase your debt. They’re not always deceptive, but are often buried in fine print.
This makes it important for users to read the terms and conditions of their credit cards carefully. Let’s take a look at 8 hidden credit card charges.
Most credit cards often charge a fee of 1-3% on international transactions. Before you travel or shop internationally, you must check your card’s foreign markup.
Some cards also charge a joining fee and have an annual fee for their services. Make sure to check all the options and see if you can choose a free card.
Most credit cards charge a hefty fee for cash advances. Further, if you withdraw cash from a credit card, interest starts being applicable on it immediately.
Some cards charge 3-5% of the total amount when you transfer your debt from one card to another. While the transfer can save you interest, overall, it might cost you more.
Some cards charge fees if you spend over your limit, especially if you opted in while taking the card. Keep a check on your spending and ensure you don’t go overboard.
This one is obvious, but cards charge you when you make a late payment. You must remember to set auto-pay or reminders to pay your card bill.
Some cards charge users for being inactive over an extended period of time. Inactivity can also lead to the closure of the card, a lower credit score, and loss of rewards.
Some cards even charge you while redeeming reward points for certain things, especially travel. Free rewards aren’t always free.
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