Credit cards can be compared on a variety of criteria, the most common of which are annual fees and interest rates. However, credit cards are now a bundle of services and it is a good idea for a credit card user to think about their own spending habits before choosing a card.
For example, for a person who does not always pay their credit card bill at the end of the month (within a non-interest payment period!), There are other things to consider than just the annual card fee. In addition, it is good to take into account, for example, credit card interest and account management fees that are due if you have an interest bearing on the invoice.
But what does an account management fee mean, and what kind of account management fees do credit cards offer in Finland?
What is an account management fee?
An account management fee is a billing surcharge added to the total amount of your credit card bill. In most cases, the billing surcharge will only be added to the invoice if you have an open credit on the invoice, that is, you have not paid your credit card bill in full within the non-interest payment period.
However, there are exceptions to this basic practice. For example, Danske Bank charges you $ 2 each month, or a total of $ 24 per year, regardless of whether the invoice is interest bearing or not. Having used your credit card (or credit card in combination cards) once a month means that the invoice comes with account management fees – whether you paid it in full or not.
Some, in turn, do not charge an account management fee at all, whether or not there is interest-bearing credit on the invoice. Norwegian Bank and Eurocard, for example, are such cards. The account management fee is 0 euros in both.
Account management fees in comparison
Credit card account management fees
In most cases, account management fees are in the range of 2-4 euros. The most expensive account management fees will increase to EUR 5. Such account management costs are requested by, for example, K-Plussa MasterCard. However, it is an annual fee-free card, which can offset high account management fees.
Take advantage of the credit feature
American Express cards have been omitted from the table. After all, they are not really credit cards but payment cards. It is thus not possible to take advantage of the credit feature. The same applies to Diners Club cards, which are initially charge cards, but the consumer can apply for a credit feature if they wish. There are no billing fees for Diners Club and American Express cards.