Credit Card Fees You Should Know About

It is a fact that one of the main points that can attract you to the best credit card is its rewards. How can you not when your every swipe could mean free tickets or a shopping spree? Moreover, there is also the low interest rates and wide landscape of service that you can consider.

But don’t get too happy too soon. The cynical adage ‘nothing is free’ certainly holds true with bank credit cards. The perks and rewards you thought you earned can actually cost you a significant amount.

Rewards Redemption Fees

You charge furiously just to earn points for rewards. And the day you’re finally ecstatic to get your hands on it, turns out you have to pay for it first. It’s a real bummer to think that you earned it. Airline tickets are an example of this. According to the bank, you have to pay administrative charges, taxes and what not.

Foreign Transaction Fee

This fee is charged whenever you transact over at international network or a foreign bank. It used to be that this charge is called a currency conversion fee. When you transact using money conversion, banks slather a fee for what it costs them. But that’s not the case any longer for you are charged with a foreign transaction fee so long as a foreign bank is involved. Even when you transacted in dollars, the mere involvment of an international network is enough reason for the charge.

Reward Reinstatement Fee

If you get late on a payment, you forfeit your chance for a reward. But cleverly enough, you can recover this by paying a so-called reward reinstatement fee and until such time you are on time with payments again.

Payment Protection Fees

You sign up for this fee monthly as a protection in case you encounter misfortunes like unemployment or illness that would cause you to get behind on payments. It also goes by the name credit shield or credit safeguard.

Activity Fee

Leaving your card dormant in the hopes of saving money can actually cost you some amount. If your card is inactive, banks don’t have a profit. So they automatically charge you with a fee for it. Others retrieve that fee once you have started charging again. Others give it back as your rebate once you’ve reached a certain amount on charges.

Banks are always finding ways to increase revenues. Due to amendments made to favour consumers, credit card providers need to stay afloat thus the ever sneaky ways to add fees to every card user.