Personal Finance Buzz

Credit card transaction fees cost everyone. We know this. But credit card fees cost even more than you thought. On top of paying fees in their lives as consumers, Canadian taxpayers are paying more credit card fees through costs to the government.

When most of us think of the cost of using credit cards, we think of annual fees, interest charges and over the limit costs. Few of us think about the costs that everyone pays when it comes to using credit cards.

Having a credit card is something that many people simply take for granted as a necessity. However, a credit card can in reality cost you more than the convenience could ever be worth when you consider the interest charges, annual fees and transactions costs associated with owning and using a credit card. If you’re still not convinced, consider the benefits and drawbacks of owning a credit card, and consider the alternatives to this most expensive of all ‘must-haves’.

New credit card fees are coming. Sure the Credit CARD Act provides some consumer protections. But credit card issuers are rushing to fill the gap.

When you are issued a credit card, you are assigned a credit card limit. This is the highest balance you can spend on the card. Anything spent above this amount will incur an above-the-limit fee. Your initial credit card limit is based on your income and credit history.