Want to have a credit card? If so, there are several things you need to consider, one of which is credit card fees. Although credit cards provide many benefits, they often come with certain fees.
When you apply for a credit card, you need to meet the terms and conditions for it to be approved. If you are approved, you will receive a credit card holder agreement letter which you must understand.
Usually the document outlines all the fees you may incur using your credit card. Therefore, it is important for you to know the various costs that you may incur when using a credit card.
Well, below are some of the most common credit card fees and you need to know:
Also read this article:
List of Credit Card Fees
1. Annual Dues
The annual fee is one of the credit card fees you have to bear. Many credit cards charge a fee every year just to have the card. The annual fee varies from bank to bank, usually depending on what type of credit card you take.
The higher your credit card limit, the higher the annual fee you have to pay. In addition to the credit card limit, the features offered also affect the annual fee. So, as much as possible you should be able to calculate and estimate what type of credit card is suitable for you to use.
2. Interest Expense
When you use a credit card for either purchases or cash withdrawals, you will be charged interest. On May 1, 2020, Bank Indonesia lowered the maximum credit card interest rate from 2.25% to 2% per month.
3. Late Fines
If you are late paying your credit card bill after the due date, you will be fined. Earlier this year, Bank Indonesia extended the reduction in credit card transaction fines until June 30, 2021. Late fees decreased from 3% to 1%.
4. Cash Withdrawal Fee
A cash withdrawal fee is charged when you use your credit card to withdraw cash. Bank cash withdrawal admin fees vary by bank but are usually between around 3-6% of the withdrawal amount.
Based on the Law of the Republic of Indonesia No. 10 of 2020 concerning Stamp Duty, now every credit card bill above IDR 5 million will be subject to a stamp duty fee of IDR 10,000.
Meanwhile, credit card payments below IDR 5 million are not subject to stamp duty. The new provisions for the imposition of stamp duty are still the same as before, namely that they will be billed or appear on the next month’s bill.
6. Over Limit Transaction Fee
This fee is charged when your credit card use exceeds the maximum balance, or limit on your credit card. If you make a transaction that exceeds this limit, your credit card will be rejected and the transaction will not be processed.
If the bank does not stop you from making transactions beyond your credit limit, the bank may charge a credit card overage fee. This fee is a penalty if you use a credit card in excess of the maximum allowed balance on your card.
That’s information about credit card fees. However, there are still some other costs that you need to be aware of. Therefore, maybe you can find more information, especially if you plan to have a credit card.
This is the information from investmoneysaving.com that can be provided. Hopefully after reading the information in this article, you will be wiser in determining the need for using a credit card.
Don’t forget to share the information on this site with your friends or relatives if it’s useful. Thank you.