Using a credit card is wonderful. But when the end of the month comes, in addition to the accumulated purchases, it seems that the bills have doubled in value. Well, actually, this only happens if you don't yet know that it is possible to have a credit card. fee-free credit card and continues paying interest, annual fees and everything else.
Keep reading to learn everything about how to use your card without having to pay for anything other than your purchases. We'll also explain what each charge on your card means.
What are credit card fees?
Did you know that, in addition to late payment fees, there are other fees charged on a traditional credit card? Below are all the expenses related to card bills and their approximate amounts.
Annuity
Some institutions charge a fee just for having and using a credit card. This fee is for the service and maintenance of the card and is usually R$20 per month for the cheapest options, or around R$240 per year.
Revolving interest
Revolving interest is a charge made when the invoice amount is not paid in full, increasing the amount that the person must pay in the following month. It can exceed 10% per month.
Installment fee
For some credit cards, it makes a difference whether you pay in one or more installments. The second option may generate a fee on top of the payment for the specific purchase that was paid in installments. This charge usually ranges from 3% to 6%.
Default interest
Default interest is basically a penalty for late payment of the installment. This charge cannot exceed 1% per month.
Fine
Another way to punish those who are late with their card bills is by charging a fine, which is legally limited to 2% per month.
Why do credit cards charge fees?
As explained, the annual fee on a credit card is the amount that the bank considers necessary to keep transactions running. For this reason, it is more common for digital financial institutions to offer cards free of this fee than traditional ones, since they have fewer expenses with employees and infrastructure.
The other charges serve as compensation to the bank for the amount they lent you and have not yet received back. Finally, interest and annual fees are also sources of income for the institutions, which, like all companies, need to generate profits.
Is there a credit card with no fees at all?
There is still no credit card that is free of all types of fees. However, it is becoming increasingly common to find cards that do not have an annual fee.
Some institutions offer the service as a bonus for account holders or for those who make investments, others only have a free credit version, but with fewer benefits than those that have an annual fee.
How to get a fee-free credit card?
Before signing up for a credit card, check if there is an annual fee. Remember that even cards that are free of annual fees may have other fees, so to avoid paying any (or almost none) additional fees, there are some things you should do when using the card. For example:
- if the card has an installment fee, avoid paying for the purchase in more than one installment;
- never delay payment, to avoid generating interest on arrears and fines;
- always pay the full bill, because of the revolving interest.
If you really need to go against one of these rules, opt for installment payments, which have a lower rate than revolving interest, generate charges only on the installment purchase and do not lead to a great risk of accumulating debts such as late payments.
So, having a credit card No fees depends on choosing the right bank and card type and adopting strategic purchasing habits. If you liked this article, share it with your friends and family and free them from abusive fees and interest.
