No Fee Credit Cards in Canada

With a bit of research, you can find reputable credit cards that do not charge the extra fees that drive your balance up so inexorably. Anyone can get a credit card if they are willing to pay certain fees; the problem is that people do not research carefully into their credit card policies and fine print. The fees add up and people end up paying far more than they intended to pay for money that doesn't even benefit them.

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One important responsibility of a card owner is to make sure that you are not falling for the bold-type, large-print advertisements. A no-fee credit card sounds like the best possible deal, because nobody thinks they should have to pay $29, $59, or $129 just for the privilege of using a credit card. That's true for sub-prime customers as well as for those who have excellent credit; more true, in fact, because sub-prime customers are the ones who can least afford it. And in many cases, those credit card companies that say that their cards are "no fee" are only redistributing their fees to other parts of the bill where they will not be as easily recognized.

Cash Advances and Convenience Checks One way to avoid hidden fees is to carefully read your card's policy on cash advances and convenience checks. These are not simply charged to your credit card as another charge; they are treated as cash loans from the credit card company and interest becomes applicable to them immediately. On top of the high interest charged for these transactions, there is almost always a 3% fee on whatever amount you withdraw. Again, even "no fee" credit cards charge these fees, so be sure to read the fine print carefully.

Online or Telephone Payments There may also be fees charged for the so-called "conveniences" of phone payment or online payment, rather than payment by sending in a check. Some companies charge between $5 and $15 simply to make an immediate payment online or on the phone -- even though they benefit by getting the funds immediately and not having to wait for a check to clear.

Late Fees It is no surprise that credit card companies charge fees for late payments. But some companies do add hidden charges even to late fees. For example, some companies require a payment not only on the day it is due, but before a certain hour on that day; if you are late, even if it's the right day, you may accrue a charge. This is often true even if the bank does not publish a time of day for payments to be made.

No Fees? Obviously you can't expect a credit card to charge no fees at all. In fact, the term "no fee" generally refers to the one time or yearly fee that cards charge for you to hold them. However, the fees they do charge should be above board and made clear, or "no fee" is less a policy than a deceptive sales ploy.



Questions this article talks about: What are the no fee credit cards in Canada? Which companies offer no fee credit cards in Canada?
How many late fees and charges do credit card company charge?