When you are going to acquire a credit card it is important that you know in depth its operation and especially the commissions that you can generate having a plastic of this type. Avoid falling into debt that you probably won’t be able to pay later and take a look at this list of the most common commissions on credit cards before applying for yours.
Commissions on credit cards
Credit card commissions there are multiple movement options that can give you a commission that will gradually increase your final amount to be paid. The most common is the annuity , which consists of an annual payment for the use of the service. But, we recommend that, when choosing a credit card in addition to guiding you through it, also look to see if the plastic will have the following commissions:
This commission is usually charged 6 months after your plastic has not shown any movement. Many times it is called conditioned annuity. But in general terms it is practically the same.
Next you must use your card to avoid an additional charge.
One of the most common commissions on credit cards is the one that is applied by overdraft. This commission is charged when you exceed the credit limit of your card. It usually happens with direct payments that are bank.
Late payment of monthly payments
This commission consists of a fixed amount that the bank establishes for when you do not cover your monthly payment on time, that is, if your payment deadline is on the 30th of each month, on day 1 you can already see the payment charge late added to your total monthly payment.
Generation of additional plastics
Some cards offer the possibility of extending the credit to other people and providing them with a plastic that is called “additional”. In some cases the issuance of this plastic has a cost that adds to your monthly bill.
At this point we can add that some banks also charge annuity on the additional cards. This commission also adds to your monthly bill.
Plastic replacement due to theft / loss
This commission is charged when for some reason you lose or steal the plastic. You must report that you have suffered the loss of it, so that it is blocked and nobody can misuse it. Subsequently you must request a replacement of your plastic and the bank will issue a replacement charge that will be reflected in your next monthly payment.
The idea of the credit card is that you buy through plastic. If instead you go to the cashier and have the credit line in cash, the bank assigns you an extraordinary commission to the interest for this movement.
This charge is charged to your account statement when you file a claim for any situation and this is inadmissible. Each bank has a fixed fee established for these types of cases.
As you can see, a credit card can be a double-edged sword. Just as it can help you get out of an emergency or take advantage of thousands of promotions, if you don’t know how to use it, it can also lead to serious indebtedness. That is why it is essential to know the most common commissions on credit cards, since most of them can be avoided.
That is why we suggest that before applying for a credit card you take into account the following points :
- Ask for all possible fees charged and in what specific cases will be charged to your statement
- Guide your choice for average CAT retail
- Analyze the costs of each commission and your willingness to incur any of them
Finally, before applying for a credit card, do not forget to compare between at least three different options until you find the one that best suits your needs and lifestyle .