Credit Card Interest Rates: Nowadays, employed people depend on many attractive low interest offers including credit cards, loan apps to meet their needs, but before doing so, make sure to know whether it is a very loss-making deal for you.
Recently elected US President Donald Trump had proposed a 10 percent cap on credit card interest rates during his 2024 presidential campaign in New York in September 2024.
It was also said that we cannot allow credit card companies to charge an annual interest rate of 25 to 30 percent. The purpose of Trump’s proposal is to provide relief to consumers struggling with the burden of card debt. This total consumer debt in the US has exceeded $1 trillion.
Which banks charge less interest on credit cards in India?
Only a few banks in India offer such offers on credit cards which charge less interest than others. These cards charge less than 0.75-2 percent interest every month as compared to banks charging 3-3.5 percent monthly interest rate on conventional credit cards. Such cards target people who find it difficult to pay their bills by the due date every month.
However full payment is always the best option. This card offers more affordable options to manage the monthly balance.
IDFC First Bank’s interest rates on its credit cards like IDFC First Wealth, IDFC First Select, IDFC First Classic and IDFC First Millennia range from 0.75 per cent (9 per cent per annum) to 2.99 per cent (36 per cent per annum) every month. While deciding the interest rate, banks check the credit score, annual income, employment status, existing loan details and repayment history of the card applicant. There is no joining and renewal fee for these cards.
Know how much interest does Axis Bank charge on which cards?
Axis Bank charges 1.5 per cent (19.56 per cent per annum) monthly interest on its Burgundy Private Credit Card. For this, joining/renewal fee is Rs 50,000 plus GST charge. However, there is no such fee for Burgundy Private Savings Account holders.
What is the charge on credit cards of IndusInd Bank?
IndusInd Bank charges 1.79 per cent monthly interest (21.48 per cent per annum) on its Indulge Credit Card. Its joining fee is Rs 2 lakh plus GST. Whereas the renewal charge is Rs 10,000 plus GST. The bank waives the renewal fee on expenditure of Rs 10 lakh or more in the previous year.
Similarly, HDFC Bank charges 1.99 percent (23.88 percent per annum) monthly interest on its Infinia, Infinia Metal, Diners Black Metal, Diners Black, BizBlack Metal and HOG Diners Club credit cards. The joining/renewal fee for Diners Black Metal Card is Rs 10,000 plus GST. Whereas for Infinia Metal the charges are Rs 12,500 plus GST.
What is necessary to get a low interest credit card?
Select applicants with strong financial profiles are offered credit cards with low interest rates. Generally only high net worth individuals (HNIs) or people with excellent credit scores qualify for these cards.
Banks reserve these offers for low risk borrowers while insuring minimum default. To become eligible, applicants must maintain a healthy credit history.
Apart from this, you will also have to pay your dues on time. By doing this you will be able to get a low interest credit card or it will be more likely.
Keep these things in mind before taking the card
When choosing a low interest card, be sure to ensure whether you have to forgo benefits like bonus reward points, cashback and special features offered by regular cards. Apart from this, also pay attention to the joining and annual fees. Before taking the card, assess your needs carefully.
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