Facts About Credit Cards

Pay-Off-Fees: Sometimes a bank will actually penalize a cardholder for making all payments on time. In this case, finance charges cannot be added o the bill so a flat rate is included instead.

Annual Fees: Many issuers charge annual membership or participation fees. They often range from $25 to $50, sometimes up to $100;  “gold” or “platinum” cards often charge up to $75 and sometimes up to several hundred dollars.

Charges For Cash Advances: Many cardholders are unaware that the interest rate charged for cash advances can be substantially higher than the rate charged for purchases. Some of these rates are as high as 30% or more!  Cash advances typically do not provide grace periods for avoiding that hefty finance charge.

Other Fees:  Monthly usage fees, and penalties for maintaining a low balance or for a card which is active.

Two Out of Three People Pay Late Fees: Lenders want consumers who will charge up high balances so they can charge more interest.

Creditors Solicit New Customers With Credit Card Offers That Are Often Too Good To Be True: Accepting new credit card offers results in added debt. Here are some ways to avoid credit card headaches.