Credit card is a financial tool given in the form of plastic card or metal card by banking and non banking card providers. Credit card will gives lot of offers like no cost EMI, cash back offers, instant discounts, airport lounge access, more reward points, movie vouchers etc.
Every credit card comes with different features and benefits , but we need to choose the card which is suitable for our requirement. If you wants to use more on online products purchase then you can choose Filpkart and Amazon co-branded cards. If you are looking for fuel related then go with the cards which are providing benefits of fuel. Credit card can be used purchase goods and services through online and offline in both domestic and international.
Credit cards have various terminologies like Credit limit, cash limit, statement date, due date, late fee, cash advance fee, Over limit fee, minimum due, total due, out standing amount, FCY charges, Processing fee, Interest , GST etc. Let us discuss about all these terminologies in detail.
What is Credit Limit?
Credit Limit is the Maximum amount given to use the card. One cannot use the card beyond given limit. If the usage limit goes over and beyond the Limit then charges will come in to the picture which is called as Over limit fee. Over limit fee is varies from one bank to other bank. Any extra charges levied on the card will have GST on it.
What is Cash limit on credit card?
Cash limit is portion of the credit limit which can be used to withdraw from ATM, But When ever Money is withdrawn from ATM extra charges will be levied which is called as cash advance fee. So better not to use the card for withdrawal purpose. This facility is given only for emergency purpose if customer in need of money, then he/she can with draw money by agreeing these payment conditions. If you are withdrawing money from ATM along with Charges Interest also levied till you payback the same on prorate basis.
what is Statement date in credit card?
In credit card statement date or bill generation date is the day when the total used amount will be billed means all your purchases of credit card will be posted in one date is called as bill generation date or statement date. Every month this bill will comes to card holders, But bill generation dates are varied from person to person and bank to bank. Maximum all cards will have the bill generation dates either from 1st – 5th or 15-20 of every month, so that it is easy for customers to repay.
What is due date in credit card?
Credit card due date is the date on or before which the customer has to repay the due amount. Means customer has to cleared the statement amount before this date. If the due amount is not paid then customer has to bear the extra charges which are going levied on the card.
What is late payment fee on credit card?
Late fee is nothing but extra penalty on the card for not paying the due amount on time. Means if you are not going to pay the generated bill amount before due date then these charges comes in to picture. Once the late fee levied then automatically interest also will come on prorate basis. So better to pay due amount before due date.
What is cash advance fee in credit card?
Cash advance fee is the penalty charges levied on the card for withdrawing the cash from ATM. Cash advance fee will come for every successful withdrawal from credit card through ATM. Cash advance fee is different for different banks. So better not to withdraw cash from ATM. If emergency try to withdraw required amount with single transaction.
What is total amount due and minimum amount due in credit card?
Total amount due is the over all amount used for that particular month which is generated on the statement date. Minimum amount due is generally 5% of the total amount due. But If you pay minimum due again charges will come, soo always better to pay total amount before due date.
What is FCY Charges?
FCY charges means Foreign currency markup fee. Means if you are using the credit card for online or offline international transactions then these charges will come. In general FCY charges are 3.5%+GST
What is Processing fee, interest and GST on credit card?
Processing fee is the fee levied on the card at the time of taking EMI of any Loan facilities on the card. Interest is the charges for late payment on prorate basis and also for EMI conversions interest will be applicable. And GST is the tax levied on all extra charges of credit cards like late fee, interest, cash advance fee, over limit fee etc. GST is 18% as of now.
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