Choosing the Right Credit Card for You

Consider additional fees and costs

Credit cards may have other fees and policies that can increase your costs. For example, if you miss a payment, some credit card issuers may increase the interest rate that you pay. The amounts of these fees and charges vary from one credit card to another, and you should consider them carefully when choosing a card.

By law, all federally regulated financial institutions have to include information about fees and charges in their credit card applications. The information has to be clearly set out in an information box at either the beginning of the application, or a related document that you receive at the same time. Be sure you understand all of the fees and charges that apply to a credit card before you complete the application.

Some of the fees and charges could include:

• annual card fees
• annual fee for an additional card
• fees for cash advances and cash-like transactions
• foreign currency conversion charges
• charges for going over your credit limit
• fees for dishonoured payments (for example, an NSF cheque)
• fee for maintaining an inactive account
• interest rate increases for missed payments.

You can avoid many of these fees and charges by using your credit card wisely. For more detailed information on credit card fees and penalty charges, read the publication Understanding Credit Card Fees. You can also compare fees and other costs using FCAC's Credit Card Selector Tool.