Your credit card is your financial tool which acts as a mode of payment and helps you to execute financial transaction easily. If you misuse your credit card, you will be penalized according to the terms and conditions applicable. You may make mistakes while using the credit cards, whether it is intentional or unintentional, you will be charged higher interest rate as penalty.

If you try to deceive your credit card company while using your credit cards, you will be charged higher interest rates on your credit amount as penalty. Basically, you will be penalized in two different situations:

1. Late payment: In case of late payments of your credit card bills, you will be charged up to 30% interest the amount as penalty which should be paid along with credit amount.

2. Exceeding credit limit: As credit card companies determine a particular credit limit, a penalty is charged of you surpass that limit.  In this case, you will be charged higher interest rate up to 30% as it is the highest penalty rate that can be implied on your credit amount.

Thus,  you should be aware of all the factors which leads you on the way of penalties for improper use of credit cards. If you use your credit cards in a proper way, it will help you manage your finances and stay in a good financial situation. On the other hand, if you misuse it and  don’t adopt the rules and regulations, it will take you towards a mountain of high debt. So, be a wise financial analyst for yourself and don’t let the scenario to bear any kind of credit card penalty arise.