Beware of new credit card fees

Posted by Caitlin on July 6th, 2009

An article in today's Wall Street Journal warns consumers to beware of unexpected credit card fees. In the current economic climate, it's no surprise that banks and credit card companies are looking for any excuse to earn an extra few dollars here and there. A CEO of a bank-card advisory firm is quoted saying, "The fee income is becoming increasingly more important as interest income is falling as a percent of total revenues." Late fees, loan origination, over-the-limit, and overdraft charges are becoming more essential sources of income for the banking industry.

So now, more than ever, it's crucial to read your credit card terms carefully and check your statements. Most fees are avoidable, so long as you're attentive to rules and deadlines and practice fiscal responsibility. And when opening a new checking account or applying for a credit card, take the various fees into account when deciding which one is right for you.

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