Despite being a source of convenience, reward, and flexibility, credit cards are somehow more of a burden because they involve a few sneaky charges that can empty your pockets over time. With all the new fees coming into the market in 2025, you really should know where your money might be seeping away from. Here are the five most hidden charges on credit cards to look out for this year so as not to miss the hidden drains. Top 5 Hidden Credit Card Charges You Should Watch Out For in 2025.
1. DCC Dynamic Currency Conversion Fees
Traveling abroad or buying from foreign sites, sometimes these merchants may give you the option to charge you in your home currency. This convenience is DCC, and it comes with hidden exchange rate markups. Therefore, always insist on paying in local currency to avoid inflated conversion costs.
2. Late Payments and Interest Fees
A single miss could lead to razor-sharp late fees, huge interest rates, and penalty APR tracked for months by some banks. To stay safe, set auto-payment reminders and always pay at least the minimum amount before the due date.
3. Over-Limit Fees
A few cards choose to allow transactions in case you exceed your limit but will, at the same time, charge an over-limit fee on your head of anywhere between ₹500-₹1,000. Track your expenditures; don’t go over your credit limit.
4. Foreign Transaction Charges on Foreign Purchases
Overseas sites often impose a foreign transaction charge, which typically ranges from 2-3.5%. For shopping abroad, opt for forex-friendly cards or zero FX fee cards when not traveling.
5. Reward Redemption Charges or Inactivity Charges
Some issuers charge for redemption of rewards or charging for inactivity after the card has stayed dormant for several months. Go through the fine print to find out the policies on how to make good use of points.
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