Credit Card Monthly Fees?

Discussion in Credit Cards started by ExpertAdvice • Mar 18, 2015.

  1. ExpertAdvice

    ExpertAdviceActive Member

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    Hi all, I was recently offered a Visa Credit Card. I am not at all knowledgeable about some things about credit cards, so here are a few questions that I have in respect of credit cards; do you pay a monthly fee on a credit card even if you don't use it? do you pay an additional fee for the insurance you get on your credit card? and finally, would you recommend a credit card? and why would you? thanks for the answers and the suggestions everyone!
     
  2. DancingLady

    DancingLadyActive Member

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    I have an Amazon rewards Visa and I do not have any monthly fees. I have always paid the balance in full, so I have never paid any interest.

    I do not have any problem with having one credit card, but I have no interest in having more than one, because then I would have to remember to switch cards now and then so one didn't get forgotten and all that. As long as you are using it for the things you would have been buying anyway if you didn't have one, you shouldn't have a problem paying all of it off every month.

    I would not get the card you mentioned though. Don't take a card just because you got an offer. There are so many out there that don't have those fees, and offer some kind of rewards. Do some research first and find out which one will give you the rewards that would be most helpful for you.
     
  3. GemmaRowlands

    GemmaRowlandsActive Member

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    It depends on the terms and conditions of the card that you've taken out with regards to whether you actually have to pay any type of monthly fee or not. Personally, I know that if I don't use mine at all during the course of a month, I don't have to pay a fee for it, but I also know that not all credit cards are the same, which is why you do need to be careful about it. You should weigh up whether the offer that you have received is good enough to warrant the fee that you are paying for the card. Remember that there are lots of cards that give your rewards even when you don't pay a fee, so you might well find that one of these is a better option to go for, because of the fact that you would save money on the fees. Work out whether it is good value for you or not, but don't get carried away with it all.
     
  4. ExpertAdvice

    ExpertAdviceActive Member

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    "Remember that there are lots of cards that give your rewards even when you don't pay a fee, so you might well find that one of these is a better option to go for, because of the fact that you would save money on the fees." Thanks so much for your advice @GemmaRowlands@GemmaRowlands, I realize that banks these days really do give different rewards on the credit cards that they issue. I most certainly do not want to have to pay a fee monthly, unless it is going towards an account that I can benefit from of course. And, I would love if the insurance is minimal to none.
     
  5. rightct

    rightctActive Member

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    Where I live, I don't have to pay a monthly fee neither for possessing the respective card, nor for shopping online. It's essentially free; the only thing I have to pay though, is the equivalent of 50 cents for Internet Banking, per month, but that doesn't even matter, honestly.
    Depending on the bank that issues your credit card, it might be worthwhile or not. If you have to pay fees that exceed a certain amount, then you mustn't make a deal with that respective bank, not cease thinking about making a credit card. If it's vice versa, then simply go for it. You will undoubtedly see the benefits of having a credit card when you look up for stuff to buy online! :)
     
  6. ExpertAdvice

    ExpertAdviceActive Member

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    Very good advice @DancingLady@DancingLady, listen to this. The credit card that I was offered comes with an annual fee of about $36 USD, the bank gives a cash back of 0.25% annually. Lol, if my math is correct, which I know is it. I would have to spend in excess of $20,000 USD annually to barely get back my annual fee, and If I don't get back my annual fee, I am basically giving the bank money, not earning it..
     
  7. RapidRaven

    RapidRavenMember

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    Remember to check the terms and conditions of the credit card, to see if it has a monthly fee for possessing it. Not all cards are the same. Some require you to use it for purchasing a certain amount of goods, to avoid paying a "fine" or fee of sorts. Plus, I suggest you shop around and look at other programs as well - they may have better rewards programs.
     
  8. xTinx

    xTinxWell-Known Member

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    The insurance plan attached to your credit card is usually offered for free so long as you avail of certain services. For instance, my MasterCard provides me with free travel insurance every time I purchase travel tickets. There will be no additional charges, according to the terms and conditions stipulated under my policy.

    It pays to read your credit card policy as soon as you receive your card because it basically contains everything you need to know about your credit card - including the scope and limitation of its perks and privileges.
     
  9. remnant

    remnantActive Member

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    The best credit card is one that would enable you to put a cap on your expenditure. Most credit cards with sumptuous offers have some policies tucked in the fine print such that the prospective subscriber will not be keen on. Of particular interest is the clause in the terms and conditions section that states that the company has the right to change the terms and conditions when it deems fit without prior consultation or explanation as to why.