Credit Card Facts
Below is a MRR and PLR article in category Finance -> subcategory Credit.
Credit Card Facts
Overview
Credit card companies charge various fees for specific transactions such as cash advances, balance transfers, and late payments. They also offer benefits like travel accident insurance and more.
Key Points
Common Fees
Most credit card companies impose the following fees:
- Annual Fee: Charged simply for owning the card.
- Cash Advance Fee: Applies when using the card to withdraw cash, usually a flat fee or a percentage of the amount.
- Balance Transfer Fee: Charged when transferring a balance from another credit card. This often involves sending checks to pay off the outstanding amount.
- Late Payment Fee: Incurred if you pay after the due date.
- Over-the-Credit-Limit Fee: Charged for spending beyond your credit limit.
- Credit Limit Increase Fee: For requesting a higher credit limit.
- Set-up Fee: For opening a new credit card account.
- Return Item Fee: Applied if a payment check bounces due to insufficient funds.
- Other Fees: May include charges for phone payments, credit bureau reporting, account reviews, and additional customer services. Details are found in the credit card agreement.
Understanding Your Credit Limit
The credit limit is the maximum you can charge for purchases, cash advances, or balance transfers. Exceeding this limit results in an over-the-credit-limit fee.
Features and Incentives
Credit cards often come with attractive features and incentives:
- Rebates: Discounts on purchases.
- Frequent Flyer Miles or Talk Time: Earn miles or minutes.
- Extended Warranty: On purchased items.
- Car Rental Insurance: Coverage for rentals.
- Travel Accident Insurance: Protection during travel.
- Credit Card Registration: Helps in reporting and managing lost or stolen cards.
For a fee, you might also get:
- Balance Insurance: Covers credit card payments if you become unemployed, disabled, or pass away. Premiums are usually monthly and can be canceled if unnecessary.
- Liability Protection: Insurance for the first $50 of unauthorized charges if your card is lost or stolen, with federal law covering amounts over $50.
Considerations
Before opting for these features, evaluate their usefulness. Avoid paying for services you don’t need. Always consult the credit card agreement for detailed information on fees and benefits.
You can find the original non-AI version of this article here: Credit Card Facts.
You can browse and read all the articles for free. If you want to use them and get PLR and MRR rights, you need to buy the pack. Learn more about this pack of over 100 000 MRR and PLR articles.