If you have a HDFC Credit Card, here’s all you need to know.

HDFC Bank credit cards come with a lot of features, interesting reward points and discounts. Plus, there are different credit card categories to suit your need. However, when using a credit card, you need to be aware of the different fees associated with your HDFC Bank credit card. The credit card charges for HFDC Bank credit cards are mentioned on the HDFC Bank website. While some of these charges are mandatory, some of these charges can be avoided or reversed. Having an idea of the credit card charges ensures that you do not end up paying extra money as fees to the bank, even as you get all the benefits of your HDFC Bank credit card. In this article, we look at the HDFC credit card charges and also how you can avoid paying additional credit card charges by using your credit card wisely.

 

What credit card charges do I need to pay?

Now we look at the various charges associated with the HDFC Bank credit cards. Many HDFC bank credit cards may have an annual or renewal fee of up to Rs 500. Another fee is the cash advance fee which you need to pay if you take a cash advance from an ATM on your credit card. The cash advance fees are at 2.5 percent and a minimum of Rs 500, which is billed to the card member in the next statement. Cash advances on HDFC Bank credit cards carry a finance charge of 1.99 percent per month from the date of withdrawal to the date of full payment.

Next, we look at late payment charges would vary between Rs 100 to Rs 950 depending on the statement balance. Late payment charges are incurred if you make your credit card payment after the due date is over. There are no late payment charges if the statement balance is up to Rs 100.

The credit card charges that pinch you the most are finance charges that you incur if you revolve your credit or pay only the minimum payment due. In most HDFC Bank credit cards, the monthly percentage rate charged is Rs 3.49 per month, which comes to an annual interest rate of as high as 41.88 per annum.

Also remember that when you are spending your credit card abroad, HDFC bank charges a currency mark up of 3.5 percent.

 

How to avoid additional credit card charges?

Fortunately, if you use your credit card wisely, you do not need to pay many of these charges. Most HDFC Bank credit cards will waive off the annual fee if you make certain purchases within a period. Avoid cash advance on your credit card in case you do not need it in case of an emergency and even if you do clear it off at the earliest as cash advances start attracting interest immediately and not after the billing date.

To avoid the finance charges, it is very important to pay off your HDFC Bank credit card dues on time. Avoid making the minimum payment due on your HDFC Bank credit card as that would attract very high-interest rates and also a late payment fee. Making the minimum payment due is to be avoided strictly as that will land you in a debt trap, which is very difficult to get out of. The best is to pre-pay the bill or even schedule payments through online banking. To be able to fully pay your credit card outstanding every month, you would need to use your credit card very wisely. If you are spending within your means, you can pay off the outstanding within the payment due date. Otherwise, you have to pay the late payment fees and interest which can turn out to be a very costly loan. In case you have rolled over your credit by paying the minimum amount due, ensure that you make no new purchases in the next billing cycle till you have paid of your credit card dues. Also, when traveling abroad avoid using your credit card to avoid paying the currency conversion fee.

 

FAQs

Why do credit cards come with certain fees and charges?

Credit card fees and charges are of two types. Some fees are charged for services provided to the customer. These would include cash advance fees, foreign transaction fees, and so on. The other type of fee is charged when the customer fails to meet certain commitments. An example of such a few is the interest rate charged if the customer does not pay the outstanding bill amount by the due payment date.

How do I find out about credit card fees?

All the credit card fees are mentioned on the bank’s website. If you have an HDFC Bank credit card, you can visit the HDFC Bank website and find out about all the fees and charges that are applicable to your credit card. If you have any questions you may call up the bank’s customer care for clarification.

Do all credit cards charge an annual fee?

Most credit cards charge annual and a renewal fee. This would vary from Rs 500 to Rs 2,500. Credit cards with high annual fees offer more in terms of rewards and privileges. However, the annual fee is waived off in some cases if you make certain spends within a certain time period.

What are finance charges on a credit card?

Finance charges on credit cards are one of the most important credit card charges that one should be aware of. These are charges your bank will levy if you do not pay your credit card bill on time. This charge is simply interest on the money you have borrowed.

Why should one avoid making the minimum payment on a credit card?

If one cannot pay the credit card outstanding in full, one has the option to make a minimum payment of one’s credit card’s outstanding bill. This is also known as revolving credit. In such a case, the entire outstanding amount attracts interest at 3.49 percent a month. This turns out to be a very high rate of interest, and hence, it is important to pay the entire credit outstanding every month by the payment due date.