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A
setup fee is a fee that the issuer of a
credit card may charge to set up a new credit
card account. To find out whether or not an issuer
charges this fee, refer to the Terms and
Conditions section in the credit card agreement.
Find the section describing fees and look for one
called Setup fee.
When shopping around for a new credit card, it’s
important to familiarize yourself with the various
fees you may be charged. Oftentimes there are many
including a setup fee which some issuers will one
time. Others may be recurring.
A setup fee is charged to cover the administrative
costs involved with setting up a new account. The
amount of this fee will vary depending on the
issuer. This and the other fees associated with a
new credit card can really start to add up over
time. Therefore, it’s in your best interest to
know which fees you will be charged, how much each
will cost, and the conditions under which such
fees will be charged.
Besides a setup fee, you might find that the
credit card has an
annual fee, a fee for making late payments, a
fee for
balance transfers, a fee for going over your
credit limit, a
cash advance fee, a fee for requesting an
increase in your credit limit, and returned item
fees (also know as a bounced check fee).
Some issuers impose even more fees. They may
charge to forward your
credit history to the credit reporting
bureaus, or when you transfer funds to the credit
card account by telephone, and even to review your
account. In fact, any time the issuer has to make
an inquiry into your account, you may be charged.
All of the various fees that the issuer will
charge, including whether or not there is a setup
fee, are all delineated in the credit card
agreement pamphlet. Be sure you take time to read
through this important document! Don’t make the
same mistake others do and disregard it.
Most people evaluate only the
interest rate when choosing a new credit card,
but there is so much more to consider. If you know
that you have a high
credit score, you might try renegotiating some
of the terms such as requesting that the credit
card issuer waive the setup fee. Forgoing a few
dollars in
setup fees might be worth it in order to get
business from a creditworthy customer!
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