i recently received a finance charge on my bank of baroda credit card. Why is that?
Finance Charge at applicable rates, are payable by Cardholder towards the services provided by BOBCARD to the Cardholder(s) and/or for defaults/ delays committed in payments with reference to the card account. This charge may vary from card to card.
BOBCARD exclusively reserves the right to alter any/all charges or fees from time to time or introduce any new charges or fees, as it may deem appropriate, by issuing at least 30 days prior notice to the Cardholder/s of such change in the charges or fees. It is clarified that the said change may be indicated/ communicated to the Cardholders through BOBCARD website exclusively.
Finance Charges also accrue on
1. Cash withdrawal from the day of cash withdrawal
2. New Purchases, if the total outstanding is not paid by due date.
3. Exceeding limit - the charge will be applicable on the outstanding exceeding the sanctioned credit limit or on total outstanding balance in case of cancelled/ surrendered card.
Finance Charge payable is debited to card account on the last date of each statement period and is indicated in bill.
The finance charges will continue to be levied till card outstanding is cleared in full.
Finance charges on your Bank of Baroda credit card are basically interest that the bank applies when you do not pay the full outstanding amount by the due date or if you withdraw cash using your card. Even if you paid part of the bill, the remaining balance attracts interest from the transaction date, not just after the due date. Cash withdrawals also do not have any interest free period, so charges start immediately. You can check your statement for the exact transactions that led to the finance charge or call 1800 103 1006 for clarification. More details are also listed under the Schedule of Charges on the BOB Financial website.