6 CHARGES ON CREDIT CARDS THAT YOU MUST KNOW !

MyFinance Budget Portfolio | Personal Finance | Housing Loan | Personal Loan | Credit Card | Sharper Shopper | Calculators


Many credit card holders do not know what fees and charges that await them. Among the common fees and charges are joining fee, annual fee, cash advance fee, finance charges, late payment charges and service tax.

1. Joining fee.

In most cases, joining fee is considered a one-off payment. Different card issuers have different way of imposing this fee.

2. Annual fee.

As the name implies, this is a fee which you have to pay annually. However, the credit card issuer may exclude this fee if you meet their spending requirements.

3. Finance charges.

These charges are imposed on the remaining outstanding balance should you fail to make the payment on time. Credit card users who make on-time payments before their due date will get to enjoy these benefits

Repayment Track Record	Interest Charges
Credit card users who promptly settle their minimum payment due for 12 consecutive months	Up to 13.5% per annum
Credit card users who promptly settle their minimum payment due for 10 months or more in a 12-month cycle	Up to 16% per annum
Others	Up to 18% per annum

4. Cash advance fee.

The amount of this fee is between 3% up to as much as 5% of the total cash advanced from your credit card account. Cash advance fee is usually only charged for your cash advance transaction and not on your normal monthly spending transactions.

5. Late payment charges.

This type of penalty is imposed due to the failure of settling the minimum monthly payment before your credit card due date. Remember, even if you pay the minimum monthly payment after the payment due date, you will still be charged for the monthly finance charges on your outstanding balance together with the late payment charges.

6. Service tax.

A service tax will be charged once a year from the date your credit card account is approved. The amount of RM50 per year is imposed on a principal credit card user and RM25 for a supplementary credit card user. The service tax will be charged on the same month each year since your card has been issued to you.

Read More : http://MyFinance.com.my/articles/detail/8221351408

We also provide other various Financial Information such as, MyFinance Budget Portfolio, Personal Finance, Housing Loan, Personal Loan, Credit Card, Sharper Shopper, Calculators. For more information please visit our website MyFinance.com.my.