There’s a new trend in the credit cards world, less fees. While competing for customers, credit card issuers are now eliminating fees. In a 2016 Card Fee Survey conducted by CreditCards.com, a sample of 100 widely held general-purpose cards are charging 593 fees. That’s down from 613 in their 2015 fee survey.
The biggest change is in foreign transaction fees. Only 61 cards out of a 100 charge such fees today, down from 77 in 2015. “Many card issuers are eliminating foreign transaction fees in an effort to win business from high-spending international travelers,” said Matt Schulz, CreditCards.com’s senior industry analyst.
The report also looked at the credit cards with the most and fewest potential fees. In the most category, First Premier Bank Credit Card and First Premier Bank Secured MasterCard top the list at 12 each.
Close behind are Club Carlson Business Rewards Visa and Credit One Visa Platinum with 11 each.
On the other hand, Pentagon Federal Credit Union Promise Visa Card has no fees and seven cards have only two. The report says the average credit card has six different fees, with the late fee and cash advance fee being the most common.
As for annual fees, twenty-five of the cards surveyed charge annual fees. Annual fees can be as low as $25, as charged by both the Wells Fargo Secured card and the PenFed Platinum Cash Rewards Visa Standard card, to as high as $450, which is charged by the Citi Prestige card. Only one card – the Capital One Platinum card – dropped its annual fee in the past year.
Even with less fees being charged, total income from fees continues to increase, but the rate has slowed down in 2016 compared to the previous year.
Responsible credit card holders should avoid paying any fees a tall, unless it’s an annual fee that’s worth paying for. You should definitely have a credit card with no foreign transaction fees if you travel abroad and always pay in time and in full to avoid late fees or interest charges. This will also help with your credit score.