6 Hidden Credit Card Fees Draining Your Wallet

Credit cards come with a maze of fees beyond the obvious. From joining charges to forex markups, knowing each fee can save Indian cardholders thousands of rupees every year.

Here's what happened: Credit cards in India carry at least 6 distinct fee types — joining, annual, cash advance, late payment, overlimit, and foreign transaction charges.. Annual fees range from ₹500 to ₹10,000 depending on the card tier, but most banks waive them if you spend above a set threshold in a year.. Cash advance charges typically combine a flat fee (2–3% of the amount) plus interest from day one — no interest-free period applies, unlike regular purchases..

What you should do: Check your card's Most Important Terms and Conditions (MITC) document on your bank's website to find the exact annual fee waiver spending threshold.. Avoid using your credit card at ATMs for cash — instead, use your debit card or a low-interest personal loan for emergency cash needs.. Set a payment reminder 3 days before your due date to avoid late payment fees of ₹500–₹1,300 that also trigger penalty interest rates up to 42% APR..

If your annual fee is charged but you missed the waiver threshold by a small margin, call your bank's customer care and request a goodwill reversal — banks routinely waive it once a year for customers who ask politely.