How to Avoid Paying Extra On Credit Card Bills?

Individuals often avail credit cards that provide the maximum number of financial perks as reward points and bonus offers. However, they often overlook the charges that issuers impose on the use of credit cards. 

Being aware of these helps one to choose the most suitable card -

1. Finance charges – Finance charges are interest payment on credit card dues after the expiry of the grace period. 
2. Annual fees – This can be classified as credit card maintenance cost. Only select lenders charge an annual fee, while others offer exemptions. 
3. Overlimit fees – Financial institutions levy overlimit charges on credit card payments that exceed the credit limit. 
4. Cash advance fees – Certain issuers charge credit card users for cash withdrawal from ATMs. However, reputed lenders often offer an interest-free withdrawal period. 

Moreover, individuals can also leverage a few credit card rules to reduce their bill payment amount. – 

Also Read:- What Are The Pros and Cons of Contactless Credit Card?

1. Clearing outstanding balance on time – Individuals should actively clear their credit card outstanding dues before the end of a billing cycle. This ensures that individuals can eliminate their liability to pay hefty annual percentage rates on credit cards. 
2. EMI conversion of high-worth purchases – Credit card users should request their issuers to allow them to convert expensive purchases into affordable EMIs. Additionally, individuals have to pay a lower rate of interest by means of EMI repayment. 
3. Opt for balance transfer facility – Balance transfer facility enables users to transfer their outstanding balance from an existing credit card to a new one. They usually opt for this facility to pay off a high-interest credit card debt using a low-interest credit card. Therefore, the financial burden on users of hefty repayment reduces substantially. 
4. Refrain from withdrawing cash from ATM – Credit cards charge high interest when individuals withdraw cash from ATMs. Only cards like the Bajaj Finserv RBL Bank SuperCard allow cash withdrawal with an interest-free period of up to 50 days.

As a result, these credit card rules actively help individuals avoid paying extra as credit card bill payment. 

Also Read:- What are Secured Credit Cards & How do They Work?