When Are Closed Account Fees Charged?
Transferring your credit card balance from one card to another in order to take advantage of the new card’s low introductory interest rate is a popular thing to do. In normal economic times – and these are not normal economic times, not by a long shot – many credit cards companies want to take your business away from their competitors, and they do so by offering zero or low introductory interest rates for a set period of time (such as 3-6 months). Many people will cancel the new credit card at the end of the introductory time period, and move on to another card. Credit card companies make that harder by charging a closed account fee on a card that is canceled with a few months of being opened.
Given the fact that credit has dried up all over the nation, and credit cards are slashing credit limits and raising interest rates, there aren’t as many offers to transfer your credit card balance from one card to another and take advantage of great introductory fees. There are a few still, however, and if you read the fine print in their card holder agreements you’ll see notifications of closed account fees being levied should you cancel your new card soon after opening it. The basic facts of a closed account fee clause will be different for every credit card issuer, but typical time frames for closing your credit card account early are within 90 days of opening your account, and fees can range anywhere from $5 to $45.
To learn more about closed account fees and how to avoid closed account fees, interest rates, and any other topic regarding your credit card, be sure to speak with a representative of your credit card issuer. They are paid to help you and to answer all your questions, so be sure to take advantage of their knowledge. It could end up saving you money.
