💳 Credit Card Interest: What You Must Know!

Credit cards can be powerful tools — but if you’re not careful, interest charges can eat into your wallet fast! Here are some key facts that will help you stay smart and save money 💰.

🔹 1. Interest Is Charged Only on Unpaid Balances

If you pay your full bill before the due date, you won’t pay any interest at all. Interest applies only when you carry forward a balance.

🔹 2. Average Interest Rate: 30%–42% Annually in India!

Credit card interest rates are much higher than loans. Most cards charge 2.5% to 3.5% per month, which adds up to over 40% per year! 😱

🔹 3. No Interest on EMIs? Not Always!

Some cards offer “No Cost EMI”, but look closely. Often the interest is hidden in the product price or processing fees.

🔹 4. Cash Withdrawals Are Dangerous 🚫

Withdrawing cash using a credit card? Think twice. There’s no interest-free period, and charges start from Day 1 — often with a flat transaction fee + high interest.

🔹 5. Late Payments = Double Trouble

• Late fee (₹300–₹1300)
• Interest on unpaid balance
• Credit score damage

🔹 6. Interest is Compounded Daily

This means every day your interest grows on the previous day’s interest. That’s how ₹10,000 can become ₹14,000+ in just a few months.

🔹 7. Grace Period: Your Free Window

Most cards give 20–50 days interest-free if you clear dues fully. Use it smartly — and never spend more than you can repay.

📌 Pro Tips to Avoid Credit Card Interest

• Pay your bill in full — not just the “minimum due”
• Avoid cash withdrawals
• Track your spending using mobile apps
• Set payment reminders

💡 Remember: Credit cards aren’t evil — misusing them is. Stay informed, stay debt-free, and let your credit card work for you — not against you.