Introduction
What is a credit card fee? This is the charges that are put in credit cards for using them. Apart from the credit which you get by use of these cards, there are also the fees which increase your credit very drastically. It is thus very important to know the fees present in a specific credit card, this will help you in selecting a good company that has lower credit card fees hence reducing your card costs. Credit card fees can be taken as a form of evaluation when searching for a credit company.
Types of credit card fees
There are 4 major and very important credit card fees; these are late fees, over limit fees, and interchange fee and cash advance fees. A late fee is usually imposed for a borrower who makes payment after the due date; the fee is usually $35. If the borrower is late by more than 2 months or 30 days within that same year indirect late fees will also be imposed on him/her. A cash advance credit fee, is usually 3 % of the amount of cash advanced to the borrower, however cash advance fee doesn’t invoke penalty pricing present in other fees. Over limit credit card fees are applied when the borrower passes his/her required capacity, the fee is usually 30$. An interchange fee is paid between banks for the acceptance and use of card transactions. There are also other types of fees such as the annual, foreign transfer, pay by phone and balance transfer fees, but these have a very low effect on you compared to the 4 above.
Analyzing credit card fee
Analyzing credit card fee is a very important financial decision since it helps you to reduce costs that are brought about by the fees. The first step in analyzing credit card fee is usually identifying the type of credit card fee that may be present. This has already been done on the previous paragraph. Next is to seek information on particular credit card companies and how their rated are in terms of fees. If you know the specific fee, you will just be required to compare and contrast and check to see the most viable and economical option for your credit card services. This can be done by making comparable and applicable calculations for the credit card fees.
Tips for analyzing credit card fees
Sometimes getting specific information concerning credit card fees can be a bit costly and time taking, so you should seek the best available resources that avail information concerning credit card fees. Most credit card companies usually offer introductory packages and discounts for using certain credit cards. In your analysis take time and determine the relationship between the credit card fees and the offers and discount that you are being presented with. This is because some credit companies will offer you various discounts which are paid for by increase in the amount of fees being levied against you. So take time and keenly identify the credit card fees present before settling down to one credit card company.
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