Credit Card Fees

Owning and using a credit card can be an absolute joy – but paying off your balance at the end of each month can be an absolute pain! Add to that the fact that most credit cards charge hidden fees over and above the regular interest and you can soon be looking at a ballooning credit card debt. Credit card fees can range from the monthly interest fee to user fees, annual fees, overdraft protection and much more. That is why it is very important to always read the fine print before signing on the dotted line. Some credit card even have two billing cycles – meaning that the minimum payment due date may not be the billing date. Sometimes it is a week to two weeks earlier that the due date. In other words, even if you pay the balance off by the due date you can still be charged interest from the billing date until the due date. Unfortunately when customers complain they are told and truthfully so that they signed the agreement and are now bound by it. Another kind of fee that credit cards charge is insurance fees to cover lost or stolen cards or the balances run up on cards that have been lost or stolen. These insurances are really not necessary since most credit card companies offer these protections as part of their basic package. The extended benefits offered by these insurance plans generally do not benefit anyone but the insurers and the credit card companies. So, the bottom line is – before signing any agreement always read the fine print and have your banker or credit card representative clarify any nebulous or vague fees.