Bad or good debt grows from unknown bank & transfer fees
Credit card charges and fees boost the monthly balance of the card. A detailed study of these charges and fees would help the customer to handle their financial conditions effectively and even question the company for any unnecessary charges.
An annual fee is the money set aside which customer pays in order to have credit card account. Some Credit Cards which have incentive programs will have higher annual fees. Suppose if a customer has had a credit card for more than a year, he needs to call the company and request them to remove the annual fee.
A late fee needs to be paid when a customer pays money to the Credit Card Company or bank after the due date. It is added with the credit card balance if the money was sent before the due date and reached after that date. Late fees also depend on factors such as the card issuer, past credit history of the consumer, balance in the card and so on. The bank or the Credit Card Company sends information related to late payment to the credit bureaus.
Over Limit Fee
When customer's credit limit has gone beyond the specified amount, then an over limit fee is added to the balance. It is then considered to be justified if the customer uses more amount than his credit limit.
Returned Check Fee
Most of the people pay credit card in conjunction with a checking account monthly. Suppose if the customer does not have sufficient amount in checking account to cover up the amount then the check bounces. The bank returns the bounced check to the company informing them about the bad check. The company inserts returned check fee as well as late fee in the customer account. At the end the bank charges overdraft fees to the customer.
Hidden on the Back of the Credit Card Statement
At the back of the credit card statement there is whole lot of information about the charges and fees a customer can anticipate.
Cash Advance Fee
When a customer asks for money rather than using credit card at a store then the customer would be charged cash advance fee. The fee will be charged at percentage of the advancement or at flat rate.
Lost or Stolen Cards
Customer will be fully liable for $50 as charges if the credit card is stolen or lost. No money will be charged if the customer makes a phone call to the credit card company before it is utilized. If the thief is a family member and uses the credit card without customer's consent, then the charges will continue on the card. The customer will be accountable for the charges unless the customer takes legal action against the member.
There are other fees applicable on a customer such as reviewing the account, exposure to the credit bureau, other customer services and paying by telephone.
Choose Credit Cards Responsibly
Evaluate the charges, fees and features connected to cards and stay away from bad debts because of your negligence. Always maintain a low balance account and try to pay the amount on time.