The credit card is a financial product widely used in Spain with multiple advantages. But it is precisely those advantages, above all, that of being able to access money on credit in a very simple way that makes it necessary to know its operation well to use a credit card properly and avoid unpleasant surprises.
We can say that credit cards are a great tool but like all tools you have to use it well to avoid damaging it
One of the least known aspects of a credit card and that can affect your pocket most are the credit card fees . Knowing what they are you can avoid them and look for the card with the lowest commissions and cover your purchase and financing needs.
A first important point is that financial institutions can set the fees they want for the services of using a credit card. Simply, they must clearly inform about the maximum and minimum commission for each type of commission.
It is not that types of commissions can be invented, but they do choose the amount they want, therefore there are a number of commissions that are kept on almost all credit cards.
What are the most common credit card fees?
The most common commissions on a credit card and that you should know are the following.
Commission for issuance, renewal and maintenance
It is a commission that consists of a fixed amount of money that is paid when the card is issued and that is paid annually upon renewal. The maintenance cost is quite variable and does not apply in all cases, so look closely at the credit card contract to find out if you are being charged or not and in what amount.
Another related commission is the issuance of additional copies of the card although at a much smaller cost.
Commission for transfer of funds
It is a commission that is based on a percentage that the card issuer stays when funds are transferred from one credit card to another.
Overdraft or exceeded commission
If you make a purchase or any other type of expense and there is not enough money in the account you will be charged this commission. Another way to charge this commission is when you exceed the credit limit indicated on the credit card.
This overdraft or exceeded commission may be a fixed amount or a percentage of the amount of money discovered.
Commission for claim of default
It is a fixed amount of money that the financial institution charges you if it has to claim the payment of money owed. In addition to this commission you have to add interest for the debt generated.
Commission for early cancellation
If you cancel the credit card before eliminating your debts created with the card, it is quite common for the financial institution to charge you a commission. Also do not believe that canceling the card the debt is eliminated, remains in force.
There is a last type of commission that may be the one that most affects your pocket for taxing something quite common as is the withdrawal of cash from ATMs .
I think it’s a pretty important commission so let’s analyze it in detail.