Fees for not using the credit card and 3 other lesser known credit card related fees

Duran Mueller
May 15, 2007
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Credit card companies associate various different fees with the credit card. These fees increase the cost of credit card ownership. A close scrutiny of the terms and conditions associated with the credit card will definitely make the credit card owner aware about them. But, if they find it too cumbersome to read all the document, they can simply ask their credit card agent about it and get the facts straight. This article takes a look at a few not-so-common credit card fees.

Fees for not using the credit card

Yes, strange it might sound, but some credit card companies charge you for not using that plastic. Being, inactive for a particular period the credit card doesn't earn them sufficient money, so to recover part of their loss and 'motivate' you to use the credit card regularly they slap a fees for not using the credit card. The details of this particular fees is buried deep in the fine prints and unless you ask specifically to the credit card agent, chances are good that you might never discover it until it shows on your credit card statement.

Overseas fees

Going abroad? Make sure to checkout overseas fee levied on your credit card. Again, written in fine prints this fees is particularly common with airline and travel reward credit cards. The owners of these credit cards frequently travel to destinations abroad so they are perfect candidates to bring extra revenue to the credit card company. Sometimes it is also called foreign transaction fees.

Cash advance fees

Not a single credit card is issued in today's world without a cash advance fee in its terms and conditions. Credit card companies simply don't encourage to withdraw cash from ATM's using your credit card. So a cash advance fee and heavy cash advance APR's are slapped on the credit card owner. This fees is divided by the credit card company and the ATM owner company. But finally it is the credit card owner who has to shell out all the sum.

No-balance fee

If you are not able to maintain a particular level of balance in your credit card account, be prepared to shell out a no balance fee. Those with bad credit find this fee in their credit statement because in many cases their credit card is linked to a bank account and lack of sufficient balance in that account, coupled with poor credit history make credit card companies jittery and to counter the risk and 'encourage' credit card owner to keep their accounts in good standing they slap a no balance fees.

These fees increase the cost of credit card ownership. A close scrutiny of the terms and conditions associated with the credit card will definitely make the credit card owner aware about them. But, if they find it too cumbersome to read all the document, they can simply ask their credit card agent about it and get the facts straight.