Associate Credit Card Services

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.

As the competition between various credit card companies is increasing, they are adopting more attractive offers to acquire new customers. Though not new but 0% APR credit cards are also in the league of such offers. APR stands for Annual Percentage Rate - which in simple terms is the interest charge by companies on outstanding credit card balance. So a 0% APR means no interest is charged from the credit card holder.

0% APR credit cards come with many flavors:

0% APR for the life of credit card

0% APR for a limited period

0% APR offers for some services and a different APR rate for other services.

A credit card holder should face the fact that this kind of offer is only a marketing strategy and won't last for long. This is because that a credit card company is there to make money for their services and the APR is their leading money spinner. The 3 must ask questions listed below will surely help you get a perspective on your 0% APR credit card and make an informed decision.

1. How long will the 0% APR offer last?

If it is not for the entire life of credit card how long is the 0% APR offer going to last. Some credit card companies give this offer for 6 months, some 1 year and some for even more than that. If other things are the same the one with the longest 0% APR offer should interest you.

2. What APR will be charged after the introductory period expires?

What will the credit card companies charge you when the 0% APR offer expires should be your main concern. Because the credit card company has already losing revenue by giving you a 0% APR credit card offer it could try to compensate with a higher APR after the intro period expires. Compare this APR with the APR's of other credit cards which offer similar services. You shouldn't get ripped because you fell into a 0% APR credit card trap. This feels bad afterwards.

3. What are other fees and benefits of the credit card?

0% APR coupled with a high annual fees and other charges could wipe out the savings you intend by taking a 0% APR credit card. Also ensure the APR on cash advances, purchases, and balance transfer. If a 0% APR credit card offer tries to compensate for the loss in revenue by charging exorbitant APRs on other services its better to avoid it. Knowing about the different features and benefits is also helpful.

The idea is not to get ripped off by the credit card companies and get maximum benefits on the 0% APR credit card. The credit card companies sugar coat their offers to lure new customers but, it is in the interest of credit card holder to ask right questions and get complete facts before applying for any 0% APR credit card.