Many Americans who have begun to reduce their credit card usage may find new fees being charged. Credit card companies are looking at fees for inactivity or for customers who use their cards on a limited basis. Credit card issuers did not care about these types of accounts because they had other accounts that paid high fees and high finance charges. Credit card companies will be looking for new ways to generate income. Charging fees may prove to be the only way to increase their profits. Fees for paying late might be increased and annual fees may become the norm. If you have a credit card that has a reward program or provides you with airline miles, you may see a “reinstatement fee”. If you don’t pay that fee you may lose any points or miles you have in the program. This fee would be charged in addition to the late fee you normally are charged with.
If you carry a balance on your credit card then you probably do not want to use a reward card. These types of cards generally have a higher than average interest rate. Having a card with a lower interest rate would be better for you. You will want to keep your balance below 30% of your available credit. But if you pay your balance off each month then having a reward card might be good for you. Your credit score must remain high (above 740) to qualify for the best reward program.
Setting up your credit card with automatic payment will keep you from making any late payments. Late payments will cost you not only extra fees but probably an increase in your interest rate. You are charged a fee that you don’t want to pay contact your credit card company and dispute that fee. If you have good credit (above 700), then don’t be afraid to close an account if you have other open accounts. A rewards program or an airline mileage card must be providing you a benefit that is more then the fees you are paying.
Many credit card companies will be changing their programs and fee schedules. You must be aware of these changes by monitoring any disclosure statements sent to you by your credit card company. These statements may come with your credit card bill or they may come by themselves. So be sure you read all of the documentation sent to you by your credit card companies.