Why are credit card companies increasing their fees?

United States
February 10, 2010 5:52pm CST
Okay, this bothers me! I was watching the news, and it said credit card companies are hiking their fees-again. Even people with perfect credit scores can expect an increase in their bill! Unbelievable! What's a person to do, especially if they consistently pay off their credit bills on-time? It just seems unfair! I also hear the changes are to take effect February 22 of this year, and also in August 2010. They were saying to really read the fine print, and try to lower some of the fees. I guess credit card companies are getting desperate these days?
1 person likes this
3 responses
@qamarep (4449)
• Pakistan
13 Feb 10
its because the normal stuf is getting higher in prices. so they need to be equal with expenses of their companies.
@dksemke (66)
• United States
11 Feb 10
Credit card companies do the same thing most businesses do. They increase a cost in order to offset a loss. This is one of the basic ways to maintain desired profit margins. I don't have a number, but I can just imagine how many people abuse their credit cards and are either very slow pay or have defaulted completely. So you and I have to foot the bill. The only way to take advantage of credit cards is to pay the balance in full every month. That way you are able to actually use the card company's money for 30 to 45 days...the time between purchase and billing. You should read the fine print but sometimes it can be vague and deceiving. Don't be afraid to call the card company and tell them you want to speak to whomever has the authority to lower or drop some of the unnecessary fees that you have been charged. You don't always get what you want, but you'd be surprised how much you do get simply by asking. The bottom line is that if you are financially responsible and avoid the buy now, pay later trap - it won't matter what the card companies do because none of it will affect you!
@GardenGerty (102466)
• United States
11 Feb 10
I am not sure of the effective date, but there is a law that will be going into effect that will prohibit them from raising their fees, and so they are rushing to get it done while they still can.