Credit Card Charges

In today’s society, rarely do we have to wait until we actually have the money in our hand to purchase any item, big or small. Although it sometimes may be a better choice to pay with cash, oftentimes, eagerness overcomes patients in our quest for that “perfect” gift or those amazing shoes that we “have to have.”

Therefore, the use of credit cards has become a routine commodity. Used for anything from grocery shopping to extravagant vacations, credit cards allow borrowers to enjoy the benefits of products and services while paying back the cost of these purchases over time.

While one might think that they only Credit Card Charges they will incur will be those related to the actual cost of the product or service they purchased, this is rarely the case. One of the ways that credit card companies ensure your repayment for their lending is by charging customers an annual percentage rate.

Oftentimes, credit companies will lure individuals in by offering 0% APR for a specific period of time. After this time period, a new APR kicks in, often much higher than this introductory APR. Thus, borrowers must then pay additional Credit Card Charges on top of their pre-existing bill.

An additional credit card charge that customers may notice on their bill is an annual fee. Many credit cards charge this fee once within a yearlong period of time in return for use of their services and privilege of borrowing their money. This fee may vary based on the company.

Not only do credit card companies make money through these aforementioned charges, but they are also allowed to raise a customer’s APR at any time (unless it is fixed). They may also charge customers for incurred fees when payments are late. Oftentimes, these fees increase every day the payment is late.

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