Monthly fees by creditors
Fees, fees and more fees this is what we can expect when owning credit cards. Some of us are charged so many different fees we are not even aware of them. All of these fees add up quickly without the knowledge of the consumers. This should be illegal, but sadly enough it is very legal for creditors to do this. One should always know when they are being charged and what they are being charged. Due to the new regulations that these creditors need to follow they are looking for other ways to bring in the revenue. They do their best to hide these fees but if you look close enough you will see them. In this article we will do our best to decipher all of these fees and their meanings.
Reward redemption fees – Sounds good and reward able enough, but what does this really do for the consumer? You will be rewarded but you have to spend money for the reward. Here is the question that one wants to ask themselves. Aren’t you really just buying the reward? Yes this is exactly what is happening so in hindsight the rewards don’t really exist they just make you spend more money.
Swiping fees – these are fees that the consumer is being charged to use their credit card or swipe it. Last years alone consumers paid forty eight billion dollars on these fees in one year. Besides the convenience of having a credit card one might want to rethink this situation as well.
Activities fees - These are actual fees that one is being charged for not using their credit card. These fees can add up to about one hundred dollars a year or more. These fees are there to ensure that you use your credit card on a regular basis.
Paper statement fees – Yes you actually pay a fee to receive a bill or statement in the mail. This is comical, why can’t a multimillion dollar company pay for sending out their own bills. It may not be much, but they do it and it cost about two dollars a month. Not that much but it is a bit unnerving.
Payment protection fees – Another fee that consumers are paying that is not always beneficial. This payment is to protect you if you are late or lose your job. These fees are anywhere from eighty cent to a dollar for every hundred spent. Mathematically you are spending a hundred dollars a month for every thousand dollars that you spend.
Whether or not you were aware of these fees they are here to stay. There has been no reconstructing on these fees yet. It is always in the consumer’s best interest to read the statement and introductory contracts before and periodically during the time of having these credit cards. You should always no the stipulation of the credit cards as well as any changes that may arise. This will help you to understand what charges you are paying for and why they are being charged to you.