Lets be honest not many people read all the way through the terms and conditions of their credit cards. Lately there has been a rising trend of "hidden" fees and penalties. Your financial institution may charge you for:
If you are one of the many people that does not pay off the full amount on your credit card each month then increased credit card competition can work for you. Today many low interest rate credit cards are hitting the market and the more competition the lower interest you will pay. There are also balance transfers avaliable on many of these cards at a low or no interest rate and transfering debt from your old card can be a great way to take control of the debt (as long as you pay it off before interest is charged again). As always be careful of any hidden fees and charges on these types of cards.
There are some banks and financial institutions that offer to remove your annual fee if you spend over a certain amount or if you have a home loan or extra savings with the bank. This means that you can choose a card with a rewards program and all the benefits and features you need and not be forced to pay a huge annual fee just for the privilege of having it. Remember though don't spend extra money just to save the annual fee - only use the card as you usually would!
There is no doubt that annual fees for credit cards are increasing – and the highest fees are on the cards with a rewards program. Currently there has also been a trend to reduce the amount of rewards points that are being offered meaning that you are paying more to be part of a reward program. Make sure you are not paying for a reward program that you don't want and a card without reward program that does not have a annual fee might be a better option. If you do want the rewards always make sure that the awards points you earn each year are worth more than the annual fee you are paying for the card.
