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Credit Card Charges and Fees

Credit Card Charges and Fees

All Credit Cards come with charges regardless of the provider. Charges are a necessary part of Credit Card packages from the basis of its availability to the public. Understanding which charges to look at and which to focus on helps you get the best Card and make the best use of it.

What Credit Card charges do I need to pay?

The charges you pay partly depend on the type of Card you have and how you use it.


Your Credit Card agreement will determine a rate of APR you are required to pay on any outstanding balance carried forward each month. The APR is calculated as a yearly interest rate that is then applied to your outstanding balance each month.

APR is often applied differently to different uses of your Credit Card. For example purchases will have a different interest rate to balance transfers.

Credit Card fees (annual fees)

Many Credit Cards charge an annual fee.

For example the American Express Platinum Reserve Credit Card charges an annual fee of Rs. 5,000? but Cardholders enjoy a range of benefits including exclusive dining experiences, golf course entry and airport lounge use.


How to avoid additional Credit Card charges?

Credit Cards are a great tool in personal finance but many of us worry about ending up in debt. With careful financial management you can avoid paying extra charges on your Credit Card wherever possible.

Pay your balance in full each month

Paying the full amount owed each month ensures that you won’t have to pay interest on the money you have borrowed. While not always possible this is the best way to avoid Credit Card fees. If possible, set up a monthly direct Debit to repay your Card balance in full.

Pay as much of the balance as possible

If you can’t pay the full balance each month then endeavor to pay as much as possible. All Credit Cards come with “minimum monthly repayments”. Meeting these 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.

Use electronic payments where possible

Electronic payments are much more convenient than paying over the phone. But, more importantly, you will often be charged a processing fee when you pay over the phone. Avoiding this helps reduce the costs of using a Credit Card significantly – and makes it a lot easier to track and manage your finances.

Don’t miss Credit Card payments

If you default on a Credit Card payment you are charged a penalty fee. These penalty fees are added to your Credit Card debt. Set yourself a reminder to make your Credit Card payments every month and you can avoid these fees completely.

Do not exceed your Credit limit

Your Credit limit is your contractually agreed spending limit per month. If you spend above this limit on your Card, 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.

Use a Charge Card

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. If you are certain that you will always have a sufficient bank balance to make repayments, then a Charge Card is a useful tool to manage your finances.


Credit and Charge Cards Explained

Has talk of interest, annual fees, rates and percentages left you feeling confused?

Our simple Credit and Charge Card guides are a great place to start.

What is Card Interest

Learn More

How Credit Cards and Charge Cards work

Learn More

What is Credit Limit

Learn More

Earning Loyalty Points

Learn More

Earn Air Miles

Learn More

What is a Charge Card

Learn More

How to choose a type of Card

Learn More

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