What
are different credit card fees?
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I am sure you have read email spam and letters in the mail
that talk about 0% interest no-fee credit cards. But why do
you keep getting credit card statements with all these charges
listed in the bottom boxes that make your eyes water? There
are so many hidden charges with credit cards including things
like balance transfer fees, cash advance fees and the interest
that accrues daily on that balance that most people do not
know about.
- Shortned Due Date. Most credit card companies
have shortened the date that you must pay your bill from
30 or 31 days to 20 or 25 days, making it more of a rush
to make your payments back to your credit card bank. This
is less than a months time to get your checks in the mail.
My advice would be to use online bill pay.
- Charges for being late. We have all had
these... late penalties for barely missing our payment deadline.
Even if you pay your card off in the evening of when it
is due you can be charged a late fee for not geting that
check to them in time for the deadline. The average late
fee is around $25 ranging from $15 to $40. A word of advice
is when you are late for the first or second time you can
call into the credit card company and ask for them to take
off the late fee because you are a good paying customer
(this has normally saved me quite a bit).
- A fee for not carrying a balance? This
one is a new one for me and I would never hold a card that
imposed this kind of a balance. This in my opinion is totally
greed and a card to stay away from is the Wells Fargo Prime
Rate Card which carries a $2 minimum monthly finance charge
for paying off the balance in full. None of the cards
we carry on Banklady that we know of are similar to this
card and have no silly fees like this! Credit card companies
make money from the retailers on credit cards so why on
earth would they charge you for not having a balance and
paying it off?
- Overlimit fees. Check your limit and
do not go over or you can be charged fees on average of
$20. If you feel you need more of a credit line, call your
credit card issuer and have them evaluate your limit to
have it increased.
- Extra Penalties. If you read your cardholder
agreement you may learn that most issuers can increase your
interest if you pay other creditors bills late meaning they
can add on these type of default penalties. What does this
mean to you? Pay ALL of your bills on time!
How can I stay ahead of Credit Card bills?
Pay them on time. There is no better way than to plan ahead
and know how much you will owe on your credit card bill and
pay at least the minimum due each month. If you do not pay
that balance then you will be subjected to a late fee and
high amount of interest that will put you more in debt.
Tip: Always
look on the back of the credit card information they send
you it has a chart that explains the interest, annual fee,
cash advance fee, balance transfer fee, etc.
Latest News on Credit Card Fees:
The Supreme Court ruled in favor of banks and credit card
companies this year in a dispute over how credit companies
must disclose fees for consumers who overrun their credit
limits. The high court said the financial companies can list
over-limit fees separately on a consumer's credit statement,
on top of whatever finance charges the consumer ran up that
month. Household Credit Services Inc. and MBNA Bank, a major
issuer of credit cards, had asked the court to overturn a
lower court ruling in favor of a credit card customer assessed
separate $29 fees every time she went over her $2,000 monthly
credit limit.
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