Credit cards can be useful in Bangladesh for convenience, emergency spending, and online payments. But many people fall into debt because they don’t understand fees, interest rules, and payment traps. This article explains common risks and how to use credit cards safely.
A credit card is a short-term loan. The bank pays the merchant, and you repay the bank later. If you pay the full bill within due date, many cards avoid interest (depending on policy). If you pay late or only minimum amount, interest and fees start adding up quickly.
The minimum due is the smallest amount you can pay to avoid immediate default, but it is often a trap. When you pay only minimum, the remaining amount continues generating interest and may grow every month.
Late payment can lead to:
Many people use credit cards to withdraw cash from ATM. This is usually expensive. Cash advance often has:
Some banks allow spending above credit limit with extra fee. Over-limit can signal poor control and may reduce future approvals.
Credit cards may include charges such as:
| Fee Type | What it means |
|---|---|
| Annual fee | Yearly card maintenance cost |
| SMS alert fee | Monthly charge for alerts/OTP |
| Replacement card fee | Cost to replace lost/damaged card |
| Statement fee (rare) | Printed statement charges in some cases |
| International usage/markup | Extra charge for foreign currency transactions |
Banks consider your credit card liabilities when you apply for loans. High outstanding amounts can reduce loan eligibility because they reduce your repayment capacity (affordability).
It can be useful if you have stable income and can pay the full bill on time. Otherwise, it can create long-term debt.
Overdue patterns and unpaid obligations can create negative credit signals. Always pay on time.
Check annual fee and policy. If it costs money and you don’t use it, closing may be reasonable.
Debit card uses your own money. Credit card is borrowed money. For most people, debit is safer.