Update – FX Credit Card fees
Just a quick update on some of our recent discussions on credit card fees. I came across yet another WSJ article giving a new round of fees that various banks are charging. These fee hikes are occurring DESPITE the fact that the Fed benchmark rate is down to 1% and is very likely to hit 0% by early 2009.
In particular, take note of AMEX’s FX transaction fee increase. Definitely time for me to get a Schwab account.
JP Morgan Chase:
- Raising rates on credit-card cash advances and overdraft protection, as well as its default rate
- Charging a new $10 monthly service fee to some cardholders who have been carrying large balances for at least two years
- Raising monthly minimum payments to 5% of their outstanding balance, from 2%.
Citigroup and AMEX:
- Raising their regular interest rates by two to three percentage points.
- Amex is raising its rates on cash advances, late payments and defaults, increasing its foreign-exchange fees to 2.7% from 2% on its consumer and small-business cards and eliminating ways to earn rewards on one of its popular cards
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oh man, thanks for letting me know about amex’s fx charge. for a frequent foreign traveler (like me at the moment, and likely you and others reading), this is a good read: http://sevententotokyo.com/2008/10/avoiding-finance-fees-abroad/
basically, use PNC for no-fee ATM use, use capital one for no-fee credit card use, and perhaps ING for savings.
I just received a letter from Citibank raising my purchase APR rates to Prime + 18.99% with a minimum of 24.99%…. from the current 7.99%….hahah if they think I’m not calling to opt out (and keep my rates the same until 10/2010) they are out of their friggin minds…