Are there any Hidden Costs in Credit Card

Hidden Costs in Credit Card:-
There are a lot of hidden costs in the credit card and it depends on the provider of the credit card. It would be a lot better for you to understand the hidden costs of the credit card before you go for it.

Grace Period:-

The grace period is the extra time in which you have to pay/clear  your bills you receive it. Usually you have three weeks in which which you are neither charged any fees or interest on your latest buyings through Credit Card. Although it is great to clear the remaining bills at the last dates but it can quickly lead to some pitfall if you let it go on and on. To avoid such situation you should clear your bills on time not as soon as it arrives but withing the given date when you feel easy. Usually I go for the last week because till that date that money is in your hands and you can use it for other emergency needs which may occur during the period. But don’t forget to clear your bills on time.

Late Fee:-

Another factor which could lead you to a terrible state is the cost of using credit cards that is usually overthrown by credit card users as a garbage. They don’t even pay attention to it. These costs are not much but it can multiply to a large amount  in no time leading you to further problems.Late fees can raise up to $40 for each occurrence, which will be added to your balance, and it will be also charged by interest. Sometimes if your payment is one day late the issuer of credit card can raise your interest rate by 30 percent or more. It will also affect your other cards or account credit score which can cause you to pay a very high interest rate on future loans like a car loan for your brand new model of 2011-12 or whichever you apply in future.

The only and easiest way to escape these costs is to pay your bills on time as you receive them because once you are in this you will end up in nothing but disgrace of yourself and you will try to avoid the benefits which you may get from using the Credit Cards.

 In U.K, merchants have the right to charge customers with different prices according to payment methods. In 2007 U.K Credit Card industry was at boom by 2.4 credit cards per customer, as by the U.K payments Administration Ltd.

 In 2006 United States was nearly at the top of World for ratio of credit cards per capita, at 984 million bank-issued Visa and Master Card credit card and debit cards  for adults of nearly 220 million people.