Features of Credit Card

Interest Rate

Interest rate is the prime feature of any credit card. Interest rate is directly influencing the payment for borrowing money on the credit card. In general, the interest rate is expressed as the annual percentage rate (APR).

Grace Period

The card issuers may provide a grace period to pay off the balance. The grace period is the amount of time given to the cardholder for the payment of his credit card balance in full to avoid interest charges. Credit card grace periods range is subject to the conditions of the card issuers.

Fees

Annual fee is normally charged by the card issuer. Over-limit fee is charged on the amount exceeding the credit limit of the card holder. Cash advance fee is charged when the card holder makes a cash advance on his credit card. Balance transfer fees are added when a cardholder transfers a balance to his credit card.

Credit Limits

Credit limit is the maximum spending amount of the cardholder by using his card. The cardholder may exceed his credit limit if he has opted ‘over-the-limit’ option. He is charged with the fee for over-the-limit when a transaction goes over the credit limit.