How much interest do credit cards normally charge for payment?

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Violax

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I would like to know the interest credit cards like HDFC normally charge for payment to shops like KFC? And also I want to know the interest charged if I use the credit card in an ATM machine to withdraw cash
 
For payment to shops/merchants/online stores, there is no interest charges per se. It rather depends on when you repay the amount. If you pay the entire bill amount due within the due date, there is no interest. However, if you pay in part or don't pay at all, interest will be charged on the amount due at a high rate - as much as 36% per annum for some cards, IINW.
The same interest rate applies from day ONE, in case of ATM withdrawals. That is, there is no interest free period up to the due date or anything like that.
 
Apart from the interest charged on cash withdrawal from ATM using CC there is a fixed fee of x% is charged on the amount withdrawn. (For e.g StanChat Card used to charge 3% of cash withdrawal amount subject to a minimum of 300)
According to me using your CC for withdrawing cash should be the last option.
 
The best way to use a credit card is to pay the full due amount without fail before the due date and never withdraw cash using the CC. There are many other ways to get cash with lower interest. These CC guys charge around 3% a month which is a whopping 36% a year!!
 
The same interest rate applies from day ONE, in case of ATM withdrawals. That is, there is no interest free period up to the due date or anything like that.

A small query : suppose my CC statement/bill haven't yet generated and I had spent/swiped some X amount. Now if I withdraw some Y amount from the CC, so I suppose interest would be levied from day 1.
1. Would be the interest on X+Y amount?
2. Suppose I pay back Y amount on the very next day, so would that be considered as my repayment of the "X" expenditure or the "Y" withdrawal ? (Say in case X=Y)
 
The best way to use a credit card is to pay the full due amount without fail before the due date and never withdraw cash using the CC. There are many other ways to get cash with lower interest. These CC guys charge around 3% a month which is a whopping 36% a year!!

You do realise that it's 36% Compound Interest not 36% Simple interest. For short term a credit card would work out just fine.

E.g.
Compound Interest
On a transaction of 1L if you pay 50K in the interest free period (due date). Then 3% of the remaining 50K = 1.5K.
If you paid 30K on the next due date then the interest on the rest rest 20K in the 2nd month would be 600. And so on.
Total interest paid = 2100 on 100000 in 2 months.

OR 50K in the interest free period and converting the rest 50K in 3/6/12 EMI at 6/8/10% whatever your bank offers.

Simple Interest - EMI
If you get the entire 1L converted to 8-10% simple interest, which will turn out to be 8-10K interest on 1L but you'll pay "easy" instalments of 9K a month.

If you get 0% EMI then good, turns out to be 8.33K a month.

I should also point out that let's say after 6 months of paying off EMIs you can close down by paying the rest of the amount in one shot.

Some banks create a separate loan account to track your EMIs and for the rest you'll have to keep track of transaction IDs in Bill.

Just an example in case OP doesn't know his options.
 
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I just withdrawed 500 Rs cash from an ATM using my credit card, and I was charged 60 % i.e 300 Rs "Cash Advance Fee" as mentioned in my credit card statement. This sucks, why wasn't I told about this interest charge? :mad:
 
I just withdrawed 500 Rs cash from an ATM using my credit card, and I was charged 60 % i.e 300 Rs "Cash Advance Fee" as mentioned in my credit card statement. This sucks, why wasn't I told about this interest charge? :mad:

Cash using a CC is a big NO NO. Unless its emergency and no one is willing to buy your kidney for some bucks, you should never use a credit card for cash withdrawal .
 
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Will I be charged any more interest for this same transaction? Or is it over?

The 300 you were charged was a one time fee for cash withdrawal, apart from this you would be charged interest on the amount withdrawn from the date of withdrawal until the date of full payment.
So go ahead and clear all your CC dues, if you really want the recurring charges to end. Also take a look a the CC T & C .
 
I just withdrawed 500 Rs cash from an ATM using my credit card, and I was charged 60 % i.e 300 Rs "Cash Advance Fee" as mentioned in my credit card statement. This sucks, why wasn't I told about this interest charge? :mad:

If you had read what everybody had to post here you wouldn't have done that. You kinda deserved it. Ciao :)
 
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The only place where I have seen an extra charge on cards is :

Lamington Road shops - 2% extra
Petrol Pumps - 2.5% extra (which may be refunded) + 0.3% extra cess/VAT - which is not.
Mahanagar Gas online payment - About 1.25%
Railways IRCTC booking - dunno extra charges

Best ask before swiping if not known. Most of the place do not charge extra. Also, MGL should not charge extra for online payment thru CC - its a win win for both. As far IRCTC is concerned - they should limit CC/DC charges to 10Rs too. And do away with such charges in the long term.
 
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