Currently working people depend on many tempting low interest offers including credit cards, loan apps to meet their needs, but before that, definitely know whether it is a loss-making deal for you or not. Recently elected new US President donald trump proposed a 10 percent limit 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 debt on consumers in the US has totaled more than $1 trillion.
Perhaps only a few banks in india offer credit cards that charge lower interest rates than others. These cards charge as low as 0.75-2 per cent interest per month, compared to conventional credit cards that charge 3-3.5 per cent monthly interest. Such cards target those who find it difficult to pay their bills by the due date every month. While paying in full is always the best option, these cards offer more affordable options to manage monthly balances.
Moreover IDFC First bank offers interest rates on its credit cards such as IDFC First Wealth, IDFC First Select, IDFC First Classic and IDFC First Millennia ranging from 0.75 per cent per month (9 per cent per annum) to 2.99 per cent per annum (36 per cent per annum). While deciding the interest rate, the bank checks the card applicant's credit score, annual income, employment status, existing loan details and repayment history. There is no joining and renewal fee for these cards. Axis bank charges 1.5 per cent (19.56 per cent per annum) interest per month on its Burgundy Private Credit Card. For this, it charges a joining/renewal fee of Rs 50,000 and GST in addition. However, there is no such fee for Burgundy Private Savings Account holders.
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