odds are good that the company will drop the fee.
FEES FOR “FREE RIDERS.”
Pay your bills on time and
you pay no interest, right? Yes, but some card issuers
have found a way to sock it to free riders like you,
who have the audacity to pay off their balances in full
before incurring any interest charges. Some simply
levy a different charge, perhaps by nicking you with a
small fee each time you use the card. Cardholders
who run up interest charges for the month escape the
fee, as do cardholders who use the card frequently
(generating fees paid by the merchants who accept
the card). But if you find yourself with a card like
this, look for a different one.
INTEREST RATES. Interest rates are set by the bank or
savings and loan that issues your credit card, not by the
card company. Issuers have to stay under the interest
limits set by the state in which their headquarters are
chartered. But that’s rarely much comfort because the
limits are often 13% to 16%, or more. Introductory rates,
which may last six months or a year, are often lower.
OTHER FEES AND CHARGES.
You will be charged interest
on cash advances, a fee for paying late and a fee for
exceeding your credit limit.
PROTECTION AGAINST FRAUD. Plastic credit is pretty
safe. If your card or your card number is used fraudulently
by someone else, the law limits your liability to
$50, and issuing banks often don’t make customers
pay even that much. If your account is used fraudulently
to charge something without actually showing
the card—say, if someone orders merchandise over
the phone or online—you owe nothing. All this is
provided you report the fraud within 60 days of the
date of the statement on which it appears.
Finding the Best Credit Card Deal
The great variety of credit card fees can work to your
advantage. If you aren’t satisfied with the terms your