What are different credit card fees?
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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