A credit card has a lot of hidden costs which if an credit card neglect will have to pay more then what he would have ever expected.
In order to protect yourself from any unnecessary billing from credit card you should strictly keep in mind the following points :
You Should pay the minimum amount due
Whether you do it intentionally or unintentionally , you will bound to pay a late payment fee. This fee varies from bank to bank. If you do not pay for two consecutive months, you become a defaulter. Collection strategy then varies, depending on his risk score arrived ad from the amount outstanding, past record, individual profile/ profession. Further transactions will be blocked.
When you ever revolve your balance
Banks give you this option to pay a minimum prescribed amount and carry forward the rest to the next billing period. In this case, you will pay an interest on the outstanding amount. But the catch lies here: when you carry a balance from month to month, there is no grace period on new purchases with most cards which should be kept in mind.
Your payment cheque should never bounce:
You would have to bear a fee for dishonoured cheques. If you go beyond the due date, you become a delinquent case, and your risk profile shoots up. Also, all charges will be applicable – a fee for a bounced cheque, a late payment fee and monthly interest on outstanding amount