Credit Cards
recommended by
our experts

Get Cards
Credit Card eZine - News and Articles about Credit Cards

Credit Card eZine - News and Articles about Credit Cards

Get even more information on credit cards? Read our Credit Card eZine. The section is regularly updated by our specialists. Learn all the financial tricks. Know the pitfalls and hidden bonuses. Find out how to transfer balances and accumulate points. We will tell you about the latest offers on the market.Get your credit card education and make the most out of your plastic.

Credit Companies Revenues

Monday, May 12, 2008

Like any other businesses, credit card companies have their sources of revenues, i.e. interests, and fees. According to Wall Street Journal, credit companies' revenues from fees increased by 41% over the last four years. Now, it is $18.1 billion compared with $17.2 billion last year. Since 2003, there's a 41% increase in fee revenues. Meaning, for banks and companies, credit card fees provide a steady growth of income. Today, fees account for approximately 40% of the total revenue for card issuers. Now, customers notice not only increases in credit fees but also the appearance of some new fees for things that never had them before.

Despite of tough economic times, various credit card fees are a reliable source of income for creditors. Roughly speaking, lenders gain more profits taking advantage of other people's financial problems. Let's take a closer look at some fees and how they change over the years! Take for example, over-limit fees.

Not long ago it's was a straightforward fee so that it was next to impossible to make a purchase if you had gone over your credit limit. These days however most card issuers allow customers charging money even if their credit account is over the limit. Over-limit fees expand over the time respectively. Unfortunately, when exceeding your credit limit, you can face extremely high default rates on your cards on top of that.

Sometimes, they may be as high as 30%. And it becomes a big headache for many customers today. To be in lenders' good graces is really not so easy, especially now when the economy is weak. More and more customers charge more on their cards regardless of increasing default rates, and various fees, including late credit fees, over-limit fees and others. For some people, plastics are the only lifesaver they can rely upon.

In the meantime, banks and companies are rubbing their hands in utter delight. Increasingly, card companies start boosting some credit fees associated with more risk, including late credit fees, default interest rates. Interestingly, but some lenders start charging ATM fees for cardholders of other banks' clients.

Once you have decided to shift your balance onto a low-rate card, take a closer look at a balance transfer fee. It's true that some balance transfer credit cards may stand you a good turn when eliminating your heavy credit card debts. But the thing is, some banks start charging this fee even though they haven't charged it before, and for most cardholders these fees become a nasty surprise.

Before applying for a new credit card, read the fine print carefully to understand the terms and conditions of your credit card agreement. Now that we face hard times, it would be a wise thing to do in order to avoid further unexpected problems with your credit card accounts.

Share Opinion:   digg   Furl   YahooMyWeb   Propeller   Reddit  
Comments not found

If you have something to say, please leave your comments below.

Your Name: *
Your Email:
Your Comment: *
Enter Number from Picture: * number

* - Required Fields Add Comment
[December 05, 2011]

In a time when banks have begun charging monthly debit fees, baby boomers may be able to find discounts based on their age and experience. Our research reveals some of the best checking accounts for consumers over 50 - and the best part is that they`re free!

Comments (0)
[October 12, 2011]

All data shows that the woman entrepreneur is on the rise.This could be because women tend to work well in groups and are great multi-taskers and communicators. In addition to that, women are also making riskier decisions when it comes to financing their businesses, according to a recent survey by PNC Financial Services. These decisions may have an impact on the longevity of these female-run businesses.

Comments (0)
[September 07, 2011]

With the economic upheaval, obtaining a credit card seems a distant dream, especially if you fail to qualify for any credit card application. Nonetheless, turning into an authorized user, i.e. attaching yourself with a good-quality credit customer`s account and the consent to use it, would boost your credit scores swiftly, and jump start your credit history.

Comments (0)
* The webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the website are property of their respective owners.
We do our best to maintain the information accurate at However, all the credit cards information is subject to change and presented without warranty. See the up to date credit card terms and conditions on the secured credit card application page. Note that may be compensated by credit card issuers when visitors apply for a credit card through the links on this website., an independent, advertising-supported website, receives compensation from the companies whose offers appear on the site. This compensation impacts where and how credit products appear on our site, including, for example, the product listing order in which they may appear on separate pages. does not present or review all available credit or financial offers.
Disclosure: Not an access card.