One of the primary drivers behind why we all use credit cards is undoubtedly the convenience that these plastic cards give us. Rather than carrying a fat wallet filled with notes, a simple card could just as easily be used to pay for that gorgeous suit or taking out your date for an expensive dinner.<\/p>\n
While it gives us this privilege, it does come with a price that people tend to take for granted. Though the fees imposed by the merchants are \u201cnegligible\u201d so to speak, an accumulation of these charges could build into bigger amounts in the future.<\/p>\n
Some are fees that are compulsory and come with ownership of a credit card. Others are specific to the credit card transaction you are making.\u00a0 There are also charges that are more of a penalty such as for late payments or lost cards.<\/p>\n
Being aware of the charges imposed is definitely one of the central steps in managing our finances. Take note of the variety of fees and do not be easily lured into interest free period term.<\/p>\n
It is always advisable to ask in detail the terms and conditions that come with a credit card so as to make sure we do not end up paying more than we intend to. Below is a general list of charges that a cardholder should be mindful of.<\/p>\n
Joining fee:<\/strong> While this is not so common, some credit cards may still impose this fee. It is a one-time fee that is similar to a registration fee. Depending on the banks and type of credit card you choose, the charges can differ. The most common rate would go at about RM50 to RM100.<\/p>\n Annual fee:<\/strong> Annual fees are the fees that banks charge on a yearly basis. Depending on the type of cards you apply for, be it a classic, gold, business gold, business platinum, platinum and so forth, the annual fees can differ. Some banks may also charge annual fees for supplementary cards.<\/p>\n Government service tax:<\/strong> This is a consumption tax governed by the Service Tax Act 2018.\u00a0 An annual service tax of RM25 is charged for each principal card and supplementary credit card.<\/p>\n