Credit Card Fees – How Much Do You Know
Posted by: Staff Writer | Jul 21,2007
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Many people use credit cards without truly understanding the fees they can be legally charged. Take the following true-or-false test and see how well you know the things credit card companies can hit you with.
Most Banks Give You A Grace Period When It Comes To A Due DateFalse. Some banks will offer this service, particularly to their better customers. However, the majority of credit cards will charge you a late fee even if you're only one day late. The cost can range from $25 to $50.
Calling The Credit Card And Explaining Why Payment Is Late Can HelpTrue. Depending mostly on what kind of history you show in making payments, credit card companies will often remove a late fee if you call and give a reasonable explanation, such as a computer problem or a postal delivery issue.
You Don't Pay A Fee For Cash Advances Or For Writing Credit Card ChecksFalse. With both cash advances and with credit card checks, you are charged generally a percent of the amount, typically 3 percent. Sometimes you will be charged a minimum amount regardless of how little money you borrow.
If You Go Over My Limit, The Credit Card Will Stay Pay For The PurchaseTrue, but they will probably also hit you with a "over the limit" fee. It's important to keep track of your monthly purchases yourself. While you can check with your credit card company either online or on the phone, it can take a week or two for some transactions to be posted.
A No-Annual Fee Card Means The Card Doesn't Cost Money If You Pay Off My Bill Each MonthFalse. Some cards charge a monthly service fee or a minimum finance charge, and that's even for people who pay off their bills in full.
If You Buy Something From Another Country Over The Internet, You Do Not Pay A FeeFalse. Your credit card company will add a 3 percent surcharge for the currency exchange.
It Is Illegal For Merchants To Pass On The Fee They Are Charged By Credit Card Companies To CustomersFalse. It's totally legal for merchants to cover the expense they pay a credit card by charging you more for a product or service than a cash-paying customer.
You Save Money Transferring Money From One Card To AnotherMaybe. You might save money by paying a lower interest rate, but you need to be aware of any transfer fees. Some companies charge a flat rate and others charge a percent of the amount transferred.
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