Credit card usage fee

Ahmad Munir

Hai dear,

There are various types of charges that you have to understand, including:

Joining fee

The credit card issuer may impose a fee will be charged only once. This fee may vary from one credit card issuer to another.

Annual fee

This is a flat fee payable once a year. You are required to pay the fee even if you never use your credit card. The annual fee is usually in within RM60 to RM90 for classic card and RM130 to RM195 to gold card.

Finance charges (interest)

This is a fee that is charged to you by your credit card issuer for the remaining unpaid after the due date. This charge is usually calculated based on the daily balance. With effect from 1 July 2008, the interest rate charged is elevated in the repayment of the cardholder. It aims to promote the use of credit cards in discipline among cardholders. Starting from March 31, 2009, the new interest rates are as follows:

Cash advance fee

This is a fee charged for each cash advance obtained. This fee is usually 3% to 5% of the total cash advance taken and is in addition to the finance charges imposed on the amount of the advance is given to you. Finance charge calculated from the date the money is taken or when the amount stated in your credit card account. The amount of the cash advance is likely to be capped for each client.

Late payment charges

These are charges levied if you fail to pay at least the minimum monthly amount before a specified date. If you pay after the expiry date, you will be subject to finance charges (interest on the outstanding balance) and late payment charges. Late payment charges can reach 1% of the outstanding balance or a maximum of 75 while a minimum of RM5.

Details of all fees and charges your credit card at your banking institution's website.

Finance charges, fees and interest free period

You can enjoy an interest-free, usually for 20 days from the date the item is first recorded (for purchase only) If you do not have any outstanding amount payable from the previous month. Therefore, if you only pay part or the minimum amount of the balance due, you will be charged interest on all purchases made via your credit card balances from transaction date recorded.

Thank to read..