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Horizon Card Services Horizon Gold Credit Card

Why Fewer Banks Are Charging Credit Card Fees

[Thursday, November 9th, 2017]

It used to be that if your credit card payment was late, you could count on paying a fee in the neighborhood of $35. Similarly, if you accidentally went over your credit limit, you’d pay for it, rather than having your card turned down. Over-the-limit charges were usually also around $35, and they could really add up if you went over the limit more than once a month.

Nowadays, however, fewer people have to worry about incurring these annoying charges. That’s because credit card issuers like Citi Simplicity have done away with fees, for the most part. When cardholders go over their limit the first time, or make one late payment, they aren’t charged a fee at all. Some issuers never charge a fee, no matter how many times customers go over the limit or pay late.

This is in large part due to the Credit CARD Act of 2009. That stands for Credit Card Accountability Responsibility and Disclosure Act, and it make it tougher for credit card issuers to pass fees on to customers, whether the fees were hidden or not. After this credit card reform passed, more and more credit card banks did away with late fees and over the limit fees, to the point where now, people who don’t want to pay these fees really have to reason to worry about them at all.

Finding a great no-fee card

If you’re looking for a no-fee credit card, look for one that also has a low APR, and a good rewards program. Fees to look out for include annual fees, late fees, over the limit fees, foreign transaction fees, ATM fees, cash advance fees, and fees for balance transfers. Some of these fees are easy to avoid, while others aren’t. But all of them can be avoided, if you look for the right card and are careful how you use it.

A no-fee credit card may have limited rewards, as the credit cards with the biggest and best rewards often charge annual fees. These annual fees are often worth paying, because of the high value rewards you receive, from frequent flyer miles to hotel reward points. However, you can still find a cash back or other rewards credit card without paying any feel at all.

See also

Q: Why Banks Care About Your Credit Score

Your doctor wants to know your blood pressure. Your ex-wife wants to know your yearly income. Your blind date wants to know how tall you are. And your bank wants to know your credit score.

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Q: What the Best Credit Cards Have in Common

Credit cards come with many different types of perks; some have lots, some not as many. But the best ones have a few things in common

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Q: What to Look for in a Travel Rewards Credit Card

If you’re in the market for a great new travel rewards credit card, you might be wondering what to look for.

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Q: How to Find the Perfect Credit Card

There are hundreds of credit cards available today. Out of all those, how do you figure out which one is right for you? The average person has about four credit cards—none of which might be the right one to maximize their spending and leverage their financial situation to the best of their advantage. The perfect card for one person might be terrible for another. Here’s what to look for in the perfect credit card for you.

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Q: The Advantage of Annual Fees

When choosing a new credit card, many people first look for cards that don’t charge an annual fee. After all, with so many no-fee credit card options, why would anyone want to pay an annual fee for a credit card?

more ››
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