Even the Most Dutiful Credit Card Customers may soon be Hit with Unexpected Fees
You’ve always played by the rules. You dutifully pay on your credit card each and every month, and are proud to say you’ve never missed a payment or a due date.
So, why in the world have you just noticed that your credit card’s interest rate is set to go through the roof?
Unfortunately, many banks are not being particularly choosy with whom they raise rates and introduce fees. Take Bank of America, for example: this creditor has plans to implement an annual fee to millions of its customers, ranging anywhere from $29 to $99. Bank of America, which is calling this annual fee “experimental,” may affect any cardholder.
Citigroup has also gotten creative, as it has recently begun charging annual fees to those customers who don’t charge a specific amount onto their cards in a given year. Called inactivity fees, many creditors are requiring that their customers charge at least a specific amount during a specific time period, or be faced with fees.
If it seems a little more than odd to be punished for staying out of debt, then you’re not alone. Millions of Americans are scratching their heads and wondering: what exactly do I have to do to NOT incur fees and interest rate hikes on my credit card?
If you have a strong credit score, you will likely be in a good position to call the shots if you receive any new fees or charges on your credit card:
- Call the creditor and demand to have the fee waived. Argue that you have been a loyal and dependable customer.
- Consider paying the fee anyway. If you have a good credit card with a great, low interest rate, consider paying the fee, as the benefits that the low interest rate brings will certainly outweigh the inconvenience of the annual fee. Likewise, if you have a great rewards card that pays out in the form of cash or rewards, you may be cutting off your nose to spite your face if you cancel your card.
- If you are unhappy with your creditor and you have great credit, you should still have plenty of options regarding credit cards.
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