Credit cards in India have seen a massive rise in demand of late, so much so that food-delivery and payment gateway companies are launching their own products. Individuals can now benefit from several lucrative and industry-first features, which are unique to the Indian credit card market.
However, there are some credit card rules that users should take into account. Keeping these rules in mind will certainly help one to avoid extra debt. Therefore, they have the option to save more by using leading credit cards. Moreover, individuals should know about the credit card charges that issuers have in place.
Credit cards require users to pay certain fees and charges under a few circumstances. In addition, users should be aware of these charges to find a way to bypass them and save more.
Some of the common credit card charges include –
Finance charges – Finance charges are akin to the interest that users have to pay while using a credit card. These charges are usually quite steep.
Annual fees – This refers to the cost of maintaining a credit card on a yearly basis. Even though some credit cards don’t carry annual fees. However, the cards that charge annual fees usually offer a wider range of perks.
Overlimit fees – Credit card issuers determine the credit limit for every user. This suggests that individuals can use funds as have been allotted to their credit card accounts. However, they charge overlimit fees when users draw funds beyond the stipulated credit limit.
Cash advance fees – A handful of financial institutions charge cash advance fees. This applies when individuals use their cards to withdraw cash from ATMs.
Knowing the proper credit card rules thus helps a user find a way around them and reduce the financial liability.
There are a few significant methods that individuals can leverage to reduce their credit card bill payment. The techniques to avoid paying extra on bill payment involve the following –
Timely clearance of credit card dues –
Individuals should pay off their credit card’s outstanding balance to avoid paying high rates of interest. Therefore, they should make sure that bill payment does not exceed the grace period.
They should make high-value purchases towards the beginning of the billing period. This gives them enough time to gather funds to pay for high expenses at the end of the billing cycle. In this way, they can reduce their credit card interest and save more.
Convert big-ticket purchases into EMIs
In case individuals are buying high-value products with their credit card, this is one way to ensure less payment. Consequently, individuals should contact their credit card issuers to avail this facility. In addition, this facility allows individuals to pay less as interest charges. Therefore, this technique substantially reduces credit card bills.
Avail balance transfer facility
Certain financial institutions enable users to transfer their outstanding balance on an existing credit card to a new one. As a result, they can shift their balance from a high-interest card to a low-interest one.
Individuals mainly avail this facility to repay credit card debt more comfortably. Even though some issuers charge a balance transfer fee, it is usually lower than the charges on a high-interest credit card. Therefore, people can substantially decrease their financial burden.
Refrain from withdrawing cash
Credit cards ussualy levy hefty interest rates when individuals withdraw cash from ATMs with their credit cards.
Only a few leading credit cards such as the Bajaj Finserv RBL Bank SuperCard allow ATM cash withdrawal with an interest-free period of up to 50 days. As a result, cardholders can save substantially on their RBL Credit Card bill payment.
In addition, Bajaj Finserv provides pre-approved offers on a range of financial products. These include credit cards, personal loans, business loans, and many more. With these offers, individuals can significantly pace up their application approval process, which makes it effortless. Individuals can check their pre-approved offer simply by providing their name and contact information.
Customers can thus follow these credit card rules to substantially lower their bill payment amount. On the other hand, they should avoid using their credit cards on foreign land. By this way, they can bypass foreign transaction fees and save more.
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