For whatever reason, people cancel their credit cards soon after getting them.
When this happens, the credit card issuer will very often level what is called a "closed account fee." A closed account fee penalizes a card holder if he or she cancels their credit card within a certain time period after opening it.
Why would someone cancel a card so quickly?
Sometimes a credit card will tempt us with promises of low interest rates and other advantages, and once we get the card they turn out to be not as clear-cut as they'd been advertised.
This happens all the time, and that disappointment will very often make people cancel their new credit cards. This is when the credit card issuer will levy a closed account fee. Closed account fees can range anywhere for $5 - $45, and they can apply anywhere from 3-6 months of opening the credit card account.
Another common reason for early cancellation of a credit card is when a person transfers their balance from one credit card to another in order to take advantage of a low introductory interest rate. Once that period of low interest rate charges expires, it can be tempting to transfer a credit card balance to yet another credit card, and take advantage of their low introductory interest rate offer.
To learn more about closed account fees, transferring a balance from one credit card to another, hidden fees, penalties, low introductory interest rates, or any other aspect of a credit card, be sure to consult with a financial professional.
They help people find the best credit card rates all the time, and also have a lot of suggestions on how to avoid closed account fees and other credit card penalties.
