More Credit Card Gotchas

This blog is the second of several in which I will address the many gotchas the Credit Card industry uses to its advantage to add to its billions of dollars in revenue each year. What you don’t know or don’t understand about the fine print on your credit card contract will cost you money, so read these, and then study the fine print in your contract.

This blog addresses fees and penalties.

The credit card industry takes in over $40 billion a year in fees and penalties alone.

Late fees – Like interest rates, there is no limit to the amount credit card companies can charge you for being late on your payment. In 1996, in the case of Smiley vs. Citibank, the U.S. Supreme Court lifted the limits on late fees. As a result, credit card companies have more than doubled their revenues from late fees and penalties. Today, even one day late can result in a charge of as much as $39 or more. There are even cards that expect payment by a certain hour of the day.

Over the limit fees - The credit limit is the maximum total amount for purchases, cash advances, balance transfers, fees, and finance charges you may charge or incur on your credit card. If you go over your limit, you will be charged an over the limit fee that averages around $29. Know your credit limit and know how much you are charging.

No-Balance Fee - Believe it or not, some credit card companies will actually charge you a fee of $2 if you pay off your balance.No-Balance Fee - Believe it or not, some credit card companies will actually charge you a fee of $2 if you pay off your balance.

Inactivity Charges – You can actually be charged for NOT using your card. Some credit card companies will charge a $15 fee if your card remains inactive for more than six months.
Transaction Fee - Card holders are usually charged a transaction fee for charges other than purchases, such as cash advances. These fees are typically a percentage of the transaction amount but can be a fixed fee.

Transaction Fee - Card holders are usually charged a transaction fee for charges other than purchases, such as cash advances. These fees are typically a percentage of the transaction amount but can be a fixed fee.

Are You in Credit Card Trouble?

If you have credit card debt over $5,000, are struggling to make the minimum payments each month, take out new cards to help pay off old card balances, or seriously thought you might need to file for bankruptcy, you may qualify for Debt Settlement. You can obtain a free debt consultation from Credit Card Relief™ by clicking here. They can help you determine the best solution for getting you free of debt. For more information, read my blog dated September 29, 2006. You owe it to yourself to check out your options for eliminating your debt.