Credit cards incur various fees including joining fees between ₹250-5,000, annual fees ranging from ₹250-5,000, and cash advance fees as high as 2.5% of the withdrawn amount. According to reports from Mint, these charges can vary widely and may be waived based on spending patterns. The fees also include late payment charges, overlimit fees of ₹500 minimum, and foreign currency mark-up fees of 1-3% for international transactions.
Credit cards carry interest rates ranging from 33-42% per annum, with some cards offering rates as high as 50%. As reported by Mint, these rates apply to any overdue amount beyond the minimum payment. For example, on a ₹20,000 balance with ₹5,000 payment, the APR is applied to the ₹15,000 outstanding amount. The publication emphasizes that these rates can quickly accumulate and overwhelm cardholders.
Beyond standard fees, credit cards impose transaction charges of 1% or more on certain categories like fuel, rent, and utilities. According to Mint, reward redemption fees of ₹99 per request are also common across lenders. The publication notes that foreign currency transactions are subject to additional mark-up fees, with GST at 18% applied to all credit card transactions including annual fees and interest payments.
For debt consolidation, several balance transfer cards offer introductory 0% APR periods ranging from 12-21 months on both purchases and balance transfers. As reported by Credit Karma, popular options include the Citi Simplicity® Card with 18 months intro APR (3% fee within 4 months, 5% thereafter), the Citi® Diamond Preferred® Card with 21 months intro APR (3% fee within 4 months, 5% thereafter), and the Wells Fargo Reflect® Card with 21 months intro APR (5% fee minimum). These cards typically have no annual fees and are designed to help cardholders pay down high-interest debt more efficiently.
