Watch for Greedy Tactics that Inflate Credit Card Fees
If you’re using a credit card other than your TFCU credit card, watch for sneaky fees that are reaping big profits for some card issuers. According to a Consumer Reports article, card issuers have seen a 150 percent increase in penalty-fee income since 1998 using some pretty sneaky tactics.
One of those tactics involves more stringent payment-due requirements. Some issuers require that your payment arrive on the morning of the due date, not later in the day, to be officially received. And, if you don’t use the preprinted return envelope, some card/member agreements allow the issuer to record receipt of your payment five days after it actually arrives, increasing the chances you’ll pay a late fee. If the late fee pushes you over your credit limit, you’ll be charged an over-limit fee. Not only that, the late payment may allow the card issuer to hike your interest rate to as much as 24 percent.
If you’re thinking these sneaky fees won’t affect you because you pay on time and in full, think again. Some cards charge a $2 minimum monthly finance charge if you pay off the balance in full.
TFCU advises you to keep on top of changing terms for any cards you carry. Many low rates are variable, and credit card issuers have the right to change fixed rates under certain circumstances. Read the card member agreement form, as well as inserts in your monthly statement for changes to terms and conditions.
If you have any questions about TFCU’s credit card fees, we will be happy to discuss them with you. You won’t find hidden fees in our credit card program. We will also be happy to discuss how our cards compare with one you may be using now. Give us a call.