Premium credit cards offer exclusive perks, such as airport lounge access, concierge services, travel insurance, and reward points. However, these cards also come with hidden fees that many users overlook, which can quickly reduce the value of their benefits.
In this guide, we’ll explore the common hidden fees in premium credit cards and provide practical tips to avoid them, helping you get the most out of your card.
Many premium cards come with a high annual fee, which is sometimes billed automatically at renewal. Some cards waive fees only if you meet a minimum spend threshold.
Tip: Check if your card offers a fee waiver on annual spending.
Apart from annual charges, some premium cards charge a one-time joining fee that can range from ₹500 to ₹5,000 or more.
Tip: Factor this cost into your decision, especially if you plan to hold the card for a short period.
Using your premium card abroad or on international websites often comes with a 2–3% forex markup fee.
Tip: Choose cards that offer preferential forex rates or zero foreign transaction fees if you travel frequently.
Even premium cardholders can incur late payment fees and high interest on outstanding balances if payments are delayed.
Tip: Always pay your dues on time or enable auto-debit to avoid penalties.
Withdrawing cash from ATMs using premium cards comes at a higher interest rate and sometimes an extra service fee.
Tip: Avoid using your credit card for cash unless it’s an emergency.
Other charges may include replacement fees, reward redemption fees, or concierge service charges for certain requests.
Tip: Review your card’s terms & conditions to understand these extra costs.
Premium credit cards can offer luxury perks, rewards, and convenience, but hidden fees can eat into their value. By understanding the common charges and adopting smart usage strategies, you can maximize benefits while minimizing costs.