Credit Cards
A credit card is revolving credit — interest-free if the full statement balance is paid by the due date (typically 20–50 days from purchase), but with that interest-free period lost entirely on all transactions, including new ones, the moment any balance is carried forward, even via paying only the Minimum Amount Due. This guide explains the MAD trap in detail, and covers the December 2024 Supreme Court ruling that removed an earlier ~30% cap on credit card interest rates — meaning issuer-disclosed rates (often up to the high-30s/around 49% annualised) now apply without an external ceiling, making the MITC disclosure essential reading. We cover the RBI Master Direction framework: late payment charges only after a 3-day grace period and calculated only on the post-due-date outstanding (from October 2024), a 7-working-day card closure deadline backed by a ₹500/day penalty, bans on unsolicited issuance/upgrades, and card network portability for large issuers. We also cover cash advances (no interest-free period, plus a separate fee — the most expensive credit in this series), forex markup and TCS on international spending, EMI conversion’s often-understated true cost, and how credit utilisation affects your score and, in turn, the personal loan rates covered in Topic 29.