Excess Fees: Is Your Credit Card Costing You More?
The recent credit card reforms have highlighted just how much a credit card could really be costing us, with NAB one of the only banks to call for even more changes to give credit card customers a better deal.
To get a better idea of just how much additional fees can cost, here is a look at over limit fees and late payment structures that existing customers currently have to deal with.
Over Limit Fees
When people go over their credit limit for a statement period they will often be faced an over limit fee. To give you an idea of how much this fee may be, here are some of the rates advertised on bank websites in 2011:
- ANZ – The over limit fee information on ANZ’s website states they will charge a $20 fee for credit cards that exceed the credit limit
- Commonwealth Bank – Credit card customers at Commonwealth Bank will be charged $10 if the go over their credit limit.
- NAB – NAB removed over limit fees on their credit cards in December 2009
- St George – While St George does not appear to list a specific fee, they do state charges may be made when people go over their credit limit.
- Westpac – The information on the Westpac website indicates customers may be charged between $9 – $35 for exceeding their credit limit
Even being charged $9 every month would cost an extra $108 every year, on top of repayments, interest and any annual fees.
But these rates could change at any time and may not be regularly updated on bank websites, so be sure to check with your bank on what the actual fee currently is.
Late Payment Fees
People who are struggling to make payments on time could be losing more money than they think. Credit card late payment fees for the big banks in Australia range from $5 for NAB customers up to $25 for Commonwealth Bank customers, which could make a big difference over a year.
Someone with NAB who misses the repayment date for three months in a row is looking at $15 in additional fees, while another customer may be faced with $75 for that same timeframe.
While these fees are designed to discourage late payments, it is also important to understand just how quickly they could add up and how much they vary from bank to bank.
With national reforms constantly in the news, these rates could also change between banks at any time, so again it is important to check in with your credit card provider to make sure you know what the current rate actually is.
While interest rates are a highly competitive feature, the excess fees can make just as much difference but are rarely advertised when comparing different credit cards. Considering these fees and comparing between credit card providers will help make sure you are getting the fairest deal possible.
Similar Posts:
- Contactless Credit Cards
- 5 Credit Card Fees You Can Avoid
- Credit Card Profile: Westpac 55 Day Platinum Credit Card
- Common Fees for Business Cards
- Credit Card Comparisons
