I was just listening the morning radio show that I normally wake up to and they pulled me out of my slumber a little quicker than usual when they started talking about credit cards. Apparently since all the new rules for credit card companies go into effect in a few months, many of them are starting to try some new ways to squeeze out some more profits.
The DJ’s on the radio were very offended by some of these new fees – I guess I am not that surprised, but they do create a good case for getting rid of your credit cards.
1. Annual fees for customers who have never had a late payment
This is pretty funny. Some credit card companies are punishing you by charging a $29-$99 annual fee if you do NOT have a late payment in a 12-month period.
2. Fee for never carrying a balance
If you open an account just to get a t-shirt, gift card, etc this one might bite you. Some of the companies are now charging you a fee if you never use the card.
3. Fee for not spending enough each year
Taking the previous one a step further – some Citi cards are going to start charging fees if you don’t spend $2400 in a 12 month period. The first thing that comes to mind is Balance Transfer!
What about your Credit Score?
Most people know that keeping credit cards open that you have a long history with is good for your credit score. With all these inactivity fees increasing, it becomes a little bit of a Catch-22. If you close them you will slightly ding your credit score, and if you keep them open without using them you will have to pay. Needless to say, there are going to be a lot of upset customers.