The Truth of Credit

 Fees are where the banks make their money. This is not a secret but some of the charges they make are “mysterious” to say the least. You as your own financial advisor need to stay vigilant of some of these tactics and avoid them at all cost. Here is an example:

In the past, it was standard practice for banks to charge a fee on “premium” accounts, whereby customers paid a fee in order to secure another service, such as paying less insurance. However, now the industry has started to charge customers for not using their cards; which means previously sensible credit card owners, who kept their cards in their wallets only for use in an emergency, are now expected to pay a charge for that privilege.

The TRUTH is you should never own a card that charges for the privilege of ownership. The market is way too competitive and your money to valuable for this silliness. You should always keep the agreement you made with the card company. If they make an adjustment from the original contract call them complain. They need you more than you need them. A transfer of balance is a simple as a phone call and some of these companies need to be reminded of that. Are you being charged “hidden fees” ?

“Credit card companies made $43 Billion in fee income from late payment, over-limit, and balance transfer fees in 2004” Creditrating.com

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