There is one simple answer. They can get an easy money! Banking business is one of the most profitable business in the world because banks can easily ’steal’ your money regularly without you really notice about it. Your money, debt means their profits.
1. Credit Interest
Banks will charge you 1.5% monthly on the unpaid balance which means 18% per annum.
2. Late payment fee
This fee is payable when payments are late or there is non-payment or the amount paid is less than the previous month’s minimum amount due. It could be as high as 5% of the minimum payment due.
3. Cash advance fee
Either the banks charge you in term of percentage from the total advance fee or they impose you a minimum charge per transaction.
4. Apart from cash advance fee, you should aware that there is also 18% p.a interest that continues to be charged from the cash is disbursed until the full repayment is made.
5. Though you are the most disciplined card credit holder on the earth, the banks still get the money through a default charges such as processing fees for any transaction that you made to the shop.
Eda on The Small Business Blog
Eda said:
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12 Comments
And they love credit cards over debit cards because they make more money off them!
I work for a group called Merchants Payments Coalition (http://unfaircreditcardfees.com) and we like to point out that using debit, or using a PIN, costs merchants less than using credit, i.e. signing at the register.
But it’s much the same as the consumer-focused fees listed above — if they think they can get away with soaking card-users, they will.
The problem is that we view credit card as debt card. The ability to buy without cash-in-hand tempted us to bite more than what we can chew. If we plan wisely, I think what the bank charges us is bearable. Especially if we opt for the 0% interest monthly installment for expensive items!
Have some fun in my blog!
“5. Though you are the most disciplined card credit holder on the earth, the banks still wants your money through a default charges such as processing fees for any transaction that you made.”
consumer tak boleh kena cherge
retai;ler je kena chrge
tq sebol. stand corrected.
Yeah that is really true . I have ask the credit card provider wheater I can convert my cc to term loan coz i want to cut off the interest they charge me they said cannot i must iether pay or settle in full ho ho what the……
bank love ada makna tuuu….
I terbaca boleh.. dengan syarat kena buat plastic surgery… potong credit card tu into half… then negotiate…
i’m in the same problem. any advice?
one more thing…bank love umpama habis madu sepah dibuang…
Credit card like money or fire is not evil nor bad. If you know how to use fire, you are the master. If you let it get out of control, it will consume you literally.
1.5% per month equal 19.56 % effective rate, not 18% my friends. Like legalize “along” rates. Don’t blame the bank or any financial institution. They are there to make money. You must also know how to use banks to make money & not make money for them!
Don’t buy on credit what you can’t pay with cash today. There’s an interesting article on credit monster I just read. It at http://www.personalmoneytips.com/blog/12-signs-the-debt-monster-is-growing-out-of-control.htm/
yup… did we reallize that “along” loan rate is 1.5% per month without any collateral or guarantor ?… try check ads at harian metro …
Well said.