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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.
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