Credit Card Fine Print
 

Most of us know more about how to operate the DVD player than about our credit cards. Did you read the little fine print brochure that you got with your credit card? And every 6 months or so they send you some more fine print. (I'm guilty, I don't read that stuff)

According to the non-profit consumer group Consumer Action, credit card fees cost cardholders about $13 billion every year. All of these fees can be found in your card agreement's fine print, which many people overlook until it's too late. Here is a quick guide to some of those finely printed fees that can really add-up:

The Fees

Late Payment According to Vertis, a marketing company that researches consumer credit, 2 percent of all credit card holders occasionally miss a credit card payment. This is a costly error, as the average late payment fee is $29. However, depending on your balance, some banks charge up to $39 for a late payment. Not only will the late fee hit you directly, but the interest rate you pay will increase as well.

Over the Limit If you go over your credit limit, credit card companies can charge you an over-limit fee of $29. This $29 fee is in addition to the $29 late fee, and it can often come in tandem if the late payment pushes you over the limit!

Inactivity Charges Believe it or not, your credit card company can actually charge you for not using your credit card. Some companies will charge a $15 fee if your card remains inactive for more than six months.

Universal Default Penalties Credit card companies can increase your interest rate if you are late paying another creditor's bill, even if your payment history is perfect. All the credit card company has to do is check your credit report -- something they monitor regularly. According to Consumer Action, 44 percent of credit cards have universal default penalty provisions.

No-Balance Fee Believe it or not, paying off your balance in full can cost you. Some credit card companies will charge you a fee of $2 when you eliminate your balance.

Teaser Interest Rates A fixed interest rate is not necessarily in stone -- it too can change like a variable rate. Credit card companies are allowed to change your rate for any reason (within the stated rules of your cardholder agreement).

What You Can Do:


Read the Fine Print Your credit card agreement is one document you can't afford to not read. Everything the credit card company is entitled to do with your card will be spelled out in fine print. Pay special attention to verbiage around interest rates, late payment fees and due dates. Additionally, if there are sections or clauses you do not understand, highlight them and call your credit card company before using the card to get clarification on what could be a very costly misunderstanding.

Pay Something While I never advise paying only the minimum on your credit card balance, if you have to choose between paying the minimum or skipping a payment -- pay the minimum!

Call Your Credit Card Company The best way to navigate the fee maze and to advocate for the best rate and fairest payment terms is to call your credit card company directly. For example, if you have good credit and a history of paying on time, and then miss a payment for any reason, a call to the card company can usually stave off any finance charges or an interest rate increase.

Keep Only One Credit Card With thousands of credit card options, it is important to choose the card which best suits your finances. For example, if you know you are definitely going to carry a balance, select a card with a low interest rate or if you are going to be tempted to spend beyond your means, go with a card with a low-set spending limit. Additionally, having only one card makes it much easier to keep track of the rules and allows you to avoid the paper chase of multiple cards.

There's more

I pay off my entire balance on time every single month. Visa is my preferred card right now (since Nov. or Dec. 2004). When my credit card company (Citibank) hit me with a late fee once, I asked them to remove the fee and they did. I wish a credit card company would try to charge me an inactivity fee. Let them bring it!


Before using Visa, I had a Discover Card for a couple of years. When they refused to reverse AOL charges, I got rid of them but they keep on sending me e-mails as if I never wrote to cancel my credit card account. I was a CitiBank credit card customer from 1985 until about 2000 (I believe that I ended my association with them at that time).









Saraphen, this is great information and very timely too. Thanks!

I pay my balance off completely too. I have about 5 credit cards.

I read the fine print. I don't mess around with money.

Good info!

I have 1 card. I rarely use it, but when I do, I pay off the whole balance.

Yep... this is true. Just pay your bill in a timely manner (we'll give ya grace period). Watch out for the over the limit fees and deliquent charges too.

We.. well (I) try to play fair ball with customers when they call me at Visa. I know how it is. I just hate it when they call me stating the fact that they didn't know.



Just try not to make us look like the bad guy when you know good in well you've got a Volkswagon pocket and trying to spend Lexus cash... It ain't gonna fly!!


Read the whole application before you sign on the dotted line and you should be ok. It's common sense. :rtfm:

So you're the one there on the phone. :lol:

Actually, the only time I have paid a late fee was after 9/11. We happened to be on the New Jersey Turnpike heading north when the planes hit. We continued on to our vacation in Massachusetts, but I was in a state of mourning all week, and for a while after I got back home.

I didn't even think about that one unpaid bill, until I tried to charge something, and my card was rejected. I was livid!! I called the 800 number and laid into whoever answered. "I always pay off my balance!!" "It was because of 9/11" I couldn't get any sympathy at all, so I asked to speak to a supervisor. All she wanted to talk about was how I could wire the money to get my card reinstated. I slammed the phone down, wrote them a check and cancelled the card. Then they sent me a bill for the $29!!!

Now everytime I buy something and they offer "20% off today's purchase if you sign up for a credit card," I think about how many times $29 I would have had to pay if I had had more than one credit card, back on September 11.

Saraphen, my payment was also delayed due to 9/11. When I called the credit card company, they understood and removed the late fee. There were other customers who'd sent in payments on time and those payments had also been delayed. You were dealing with a bunch of doo doo heads.

I might have called them that before I hung up on them. :lmfao: