Credit Card Fees Examined: How to Avoid Fees and Debt
Even though the new credit card laws changed the way credit card fees were issued, these prickly expenses haven’t gone away.
In a new, far-reaching survey, Bankrate.com takes a look a the fees being levied by credit cards across the spectrum. Their study, which covers several types of credit cards and those issued by banks and credit unions, has some interesting revelations.
First, while many experts predicted that annual fees would rise and become more commonplace, Bankrate found only five of the 73 cards examined charged an annual fee.
So if you’re currently paying an annual fee for your credit card you may want to reevaluate the benefits of the card. The survey says there are plenty of cards available at no extra cost.
A few other takeaways:
- Fees for late payments range from $5-39. These fees are typically charged per instance, so be aware before you skip a payment. This is comparable to the fees charged a year ago.
- Most cards charge a balance transfer fee, but not all. A common fee is four percent of the amount, although several also offer “zero percent interest windows.”
- Some cards charge a fee for inactivity. While we’ve seen credit cards trimming their roles of inactive users, if you have lesser used cards you may want to check your next credit card bill closely. If you’re subject to a fee for inactivity you may want to put a small charge on the card every quarter or close the account altogether.
Even though fees haven’t changed dramatically since the new laws went into effect, this survey doesn’t mean they won’t change in the future. As always, keep a close eye on your mailbox and monthly statements to be aware of any changes to your policy. While these fees may seem small when looked at in isolation, they can quickly compound and add up, creating major credit card debt issues.