Just checked my credit card statement ...

[WDW_fan_in_TX]

I just checked my credit card statement and realized I'm paying a $12.50 monthly fee. I downloaded the statement so I could take a look at it, and it's sure enough in print that I will be charged a $12.50 monthly fee in addition to my $50 annual fee (It's a credit card with a $700 limit). So I'm paying $200 annually to have this credit card. It's frustrating, and it's something they don't tell you up front (they probably do it this way knowing nobody even reads their statements). I'm thinking about closing that account, but it sure is nice to have it in case something happens like the fridge going out or the car needing new tires. Is there anything I can do to get that fee waved? Or is that something I need to just talk to the credit company about?

Also, regarding fees, I'm paying a monthly credit protection fee of about $12 per card on all three cards I currently have open. This is where I need advice of the more financially minded people. Is that something I can call and have canceled? I checked the print, and the print said it's there in case I lose my job. So, if I lose my job does that mean they'll pay off the card? Or something else?

 

[Nettlelondon]

I would call them up and ask what it is for (particularly the monthly charge on an card with an annual fee) and if it is necessary or if it could be cancelled.

If you lost your job could you pay off the card balance from other money/savings? Or could your wife help out? If so ask them to stop the fee but don't stop paying the amount if that makes sense as the extra few dollars will go straight to paying off the debt, reducing the interest and shortening how long it takes to pay off the balance.

 

[firefly_ris]

https://www.bankrate.com/credit-cards/advice/is-credit-card-protection-worth-the-cost-1/#what

Basically the protection allows you to temporarily stop making minimum payments on the card due to certain circumstances until you're able to start paying on it again. It sounds like you would need to apply for it and they would need to approve it.

What is the reason for having a card with an annual fee? If you're not paying off the card every month the interest you are paying on it is likely negating any benefits the annual fee is offering you.

 

[Nettlelondon]

I am in the UK so things are often different here but there has been a massive scandal here over the misselling of these type of policies - they were often automatcially added to loans and credit cards without people knowing about it or the individual would never have been able to claim on the policy as their employment situation did not meet the eligibility rules. The policy terms need to be read very carefully.

 

[WDW_fan_in_TX]

The minimum payments is only $25 each on the 3. So I could sell enough baseball cards, if the need to arose, to be able to cover that each month. I'm seriously thinking about calling them and cancelling the protection. Also going to ask about the monthly fee while I"m at it. It's my highest credit limit card, so I don't want to get rid of it in case of an emergency.

As fr as the second question, it's the only option I had when I tried to open a card. I wanted one with miles or other benefits. But I don't get either. And I"m paying annual fees on all 3 ($50 for one, $79 for another and $149 for the third). I'd love to not pay that protection fee and/or monthly fee and put the extra money towards the balance. Right now I"m just paying the minimum. I am doing that right now on one, haven't used it in 4 moths and the balance is increasing each month, lol.

https://www.bankrate.com/credit-cards/advice/is-credit-card-protection-worth-the-cost-1/#what

Basically the protection allows you to temporarily stop making minimum payments on the card due to certain circumstances until you're able to start paying on it again. It sounds like you would need to apply for it and they would need to approve it.

What is the reason for having a card with an annual fee? If you're not paying off the card every month the interest you are paying on it is likely negating any benefits the annual fee is offering you.

 

[gottalovepluto]

The minimum payments is only $25 each on the 3. So I could sell enough baseball cards, if the need to arose, to be able to cover that each month. I'm seriously thinking about calling them and cancelling the protection. Also going to ask about the monthly fee while I"m at it. It's my highest credit limit card, so I don't want to get rid of it in case of an emergency.

As fr as the second question, it's the only option I had when I tried to open a card. I wanted one with miles or other benefits. But I don't get either. And I"m paying annual fees on all 3 ($50 for one, $79 for another and $149 for the third). I'd love to not pay that protection fee and/or monthly fee and put the extra money towards the balance. Right now I"m just paying the minimum. I am doing that right now on one, haven't used it in 4 moths and the balance is increasing each month, lol.

Try the Debt Dumpers thread and be specific with the name of the credit cards and the issuer, maybe they can help you free yourself from these fees as least. Sounds like you found some nasty cards.

Tough talk- it's time to get your financial house in order. With today's interest rates you're never, ever paying off those cc's. You will just keep digging your hole deeper- as you are coming to realize.

 

[WDW_fan_in_TX]

Thanks. I'm in the debut dumpers thread all the time. Love it. And we have been working on getting our financial house in order. Been working on that all year using the advice given in that other threaed. Things used to be a lot worse than they are now (remember when wife and I had a loan had had 500+ percent interest? Yea, that one is long paid off, cut back on eating out, not going as often, etc. Been working real hard to get things in order. Trust me, it's been a long, tedious process.

Try the Debt Dumpers thread and be specific with the name of the credit cards and the issuer, maybe they can help you free yourself from these fees as least. Sounds like you found some nasty cards.

Tough talk- it's time to get your financial house in order. With today's interest rates you're never, ever paying off those cc's. You will just keep digging your hole deeper- as you are coming to realize.

 

[bighuskermav]

Get a different card if you can (sounds like maybe not…but you need to pay these off and dump them asap). Very few cards are worth paying fees for, especially if you’re just using it for emergencies. Only AF cards I’ve ever had was to take advantage of a sign up bonus.

 

[tvguy]

Learn something every day. I was not aware any bank charged for credit cards anymore. What bank is it?
Nor did I know they issued cards with that low of a credit limit. My daughter got a Wells Fargo College Account in 2009 when she started in College. Includes a checking account, savings account and a credit card with a $2,000 limit. And that is issued to people with zero income.
Shop around, that is nuts.

 

[barkley]

with some credit cards that credit protection fee will pay the minimum monthly payment IF you meet the card's disability criteria. a former co-worker was injured in a car accident and off work a few months and said it was a MAJOR pain to deal with all the verifications they required AND she did not realize that since the cards were in both her and her husband's name that just her becoming disabled did not qualify for the coverage (her dh was less severly injured and only off work a couple of weeks). when she learned this she cancelled coverage on all her cards.

As fr as the second question, it's the only option I had when I tried to open a card. I wanted one with miles or other benefits. But I don't get either. And I"m paying annual fees on all 3 ($50 for one, $79 for another and $149 for the third). I'd love to not pay that protection fee and/or monthly fee and put the extra money towards the balance. Right now I"m just paying the minimum. I am doing that right now on one, haven't used it in 4 moths and the balance is increasing each month, lol.

have you ever considered using the free services consumer credit counseling offers? the no fee/not for profits are a great service (you can look up the reputable ones in your state online)-they can look at your overall situation and offer advice as well as assist you in removing unnecessary fees. they know all the in's and out's of the industry and can help you formulate a managable repayment plan (including in some situations finding a means to bundle all your existing credit card debt on to a single no annual fee/lower interest card).

 

[barkley]

Learn something every day. I was not aware any bank charged for credit cards anymore. What bank is it?

lots of them do-they offer tiers on cards and the ones that offer more perks (points, discounts with some companies, more services...) come with a fee. credit unions do as well.

 

[tvguy]

lots of them do-they offer tiers on cards and the ones that offer more perks (points, discounts with some companies, more services...) come with a fee. credit unions do as well.

I will have to explore that. I only have one credit card, 3% back, no annual or monthly fee and a credit limit that I hope I NEVER hit. But I should get a second card in case that one gets compromised. I just can't imagine paying $200 a year for a card, let along one with only a $700 limit.

 

[barkley]

I will have to explore that. I only have one credit card, 3% back, no annual or monthly fee and a credit limit that I hope I NEVER hit. But I should get a second card in case that one gets compromised. I just can't imagine paying $200 a year for a card, let along one with only a $700 limit.

we had an issue on one vacation with disney making a mess of charges that took weeks for them to fix (despite our credit card company telling them exactly what they needed to do) so we learned our lesson on always traveling with an additional card. we only have one that charges a fee but it's the one we take on vacation b/c it has allot of extra travel benefits one being if it's international travel they don't charge a foreign transaction fee. we only pay $49 a year (credit union) and since it does 2% rewards on groceries i just make a point of using it and then paying the yearly fee with the rewards.

 

[Anthony1971]

lots of them do-they offer tiers on cards and the ones that offer more perks (points, discounts with some companies, more services...) come with a fee. credit unions do as well.

I will agree with this which sis why it is hard to help OP.
The tiers will vary by your credit ratings….
I will add about travel cards and no foreign transactions. Many banks offer free travel cards that have no foreign transactions with rewards.
I stick with Chase my freedom unlimited card (Tiers so to speak) has a signature next to the Visa logo not all do. But checks all your Visa cards as the travel and additional warranties and more far exceed what you get with standard and even most paid travel cards although you some are signature only. The signature logo will vary by bank but they do list what is included. Usually will always be no foreign transactions, dedicated overseas phone lines, insurance on rental cars, extended warranties on purchases and more. Banks do not really need to charge a transaction fee as they never exchange at listed rate there is always an up fee.

 

[tvguy]

we had an issue on one vacation with disney making a mess of charges that took weeks for them to fix (despite our credit card company telling them exactly what they needed to do) so we learned our lesson on always traveling with an additional card. we only have one that charges a fee but it's the one we take on vacation b/c it has allot of extra travel benefits one being if it's international travel they don't charge a foreign transaction fee. we only pay $49 a year (credit union) and since it does 2% rewards on groceries i just make a point of using it and then paying the yearly fee with the rewards.

I just can't bring myself to pay for a credit card.

 

[greeneyedchick]

I would definitely follow up with why you're paying a monthly fee on top of a yearly fee. That doesn't sound right. I would also cancel the credit protection on all your cards. You're paying $432 a year for protection when you could be putting that money toward your credit card debt instead. I'm also in agreement with finding a card that does not have a fee. My husband struggled when we first got married because he didn't have any credit history. But he was eventually able to find companies or banks that would give him a credit card without a fee. We have an Amex, Visa card and Discover card that all give a % cash back and we pay no fees on any of them. Those cards are out there. I would prioritize finding a no-fee card over finding one that gives points or cash back. If you do the math on how many points you're getting at the end of the year and the value of those points over the amount you're spending on fees, it's probably break-even at best.

 

[greeneyedchick]

Here is a list of no-fee cards for people who do not have strong credit. Saving another $200+ a year in fees is the way to go.
https://www.credit.com/credit-cards/no-annual-fee/

 

[kuhltiffany]

Phone each of those cards and cancel the monthly fee for protection. Use that money to pay down the cards instead. Then cancel them when it’s paid off and get one, no fee card for emergencies.

 

[Lewisc]

The OPs credit card is designed for people with very bad credit.

Carrying ANY balance on that kind of card is very bad.

Charge a few dollars every.month. Pay in full immediately. Raise your credit rating enough to get a real card.

Sell all your baseball cards and pay down your balances

 

[_19disnA]

What credit card is right for you will depend on your financial situation and what exactly you use them for. I am not sure why you would need 3 cards particularly if each has some sort of annual fee. If you don't pay off the balance each month, the finance charges will eat up any supposed 'benefit' of having that card.

Check around online to see which card is the best match for how you intend to use it.