Credit fees?

I got a new credit card with a limit of $300. I used $117 & was disappointed that I spent that as I’m trying to spend only 90 every month. Well a surprise service fee for the year was owed on my FIRST bill so now I owe $191 & some change on my very first bill. I wouldn’t have spent even 90 if I would’ve known they were planning on charging me a service fee right away. It said in my paper work from the credit card company that they’d be taking out the yearly fee in small increments every month. When I called though the person told me that applies the second year of service (scam).  I’m worried this will look bad on my credit report advice please?

12 Answers

Relevance
  • Dan B
    Lv 7
    1 week ago

    NEVER apply for or accept any credit card that has an annual fee. It's a way to collect "interest" on card holders who don't carry a month to month balance on top of those who do carry a month to month balance. Pay the card off and close it. You should have read the fine print.

    • Login to reply the answers
  • 4 weeks ago

    All of that was revealed and explained when you signed up for the card.  Annual fees are unusually immediately dur with your first statement.

    • Login to reply the answers
  • 4 weeks ago

    You'll be fine.  Just dont use the card next month and you should have it paid off...

    • Login to reply the answers
  • 4 weeks ago

    That doesn't look bad for very long. While you owe that much, it looks bad, but within a few months after you pay it, it will no longer look bad.

    • Login to reply the answers
  • How do you think about the answers? You can sign in to vote the answer.
  • 4 weeks ago

    As long as you pay at least the minimum payment it won't hurt your credit..

    • Login to reply the answers
  • Anonymous
    4 weeks ago

    Most have no fees. Sounds like you got a bad one that does. Should have gotten a discover instead.

    • ...Show all comments
    • Never
      Lv 7
      4 weeks agoReport

      A secured discover card is a far better deal than a pay card with fees.  She should might look to get one an then close the other to stop the ongoing fees. I have had good credit for so long I just about forgot about cards with fees except high end travel cards with bid rewards.

    • Login to reply the answers
  • 4 weeks ago

    There's not much advice to give.  You need to pay it, ideally in full.  

    • Login to reply the answers
  • Ann
    Lv 7
    4 weeks ago

    This is your first credit card and I assume it is not with a local bank,  I don't know of ANY banks or credit unions that charge you an annual fee just for having the card.  You need to educate yourself on how these things work,  you should have had everything in writing and you now know that you have to actually read it.    Second, you overspent by almost $30.00  from what you had planned.  You are on your way into debt and huge interest and finance fees.   Pay off the balance, and going forward you should only use it for items you buy anyways like groceries, gas, and always pay in full each month.   To use it like a loan is not the way to handle your money.   

    Since you have paid for the entire year, keep it and do not carry a balance. After the year is up, look for a card with a bank that you have an account, or even get a secured card so you can't spend what you do not have.

    • ron h
      Lv 7
      4 weeks agoReport

      didn't qualify for a discover card.  A $300 limit is for no or bad credit.

    • Login to reply the answers
  • 4 weeks ago

    It is standard that the first year's service fee is taken out of the very first payment.

    Make sure that you pay it all off, and keep your credit utilization low from now on. It will have a minor effect, but if you don't do it again, the effect should be gone in a few months.

    • Login to reply the answers
  • Shay
    Lv 7
    4 weeks ago

    If you can pay the full amount on the first billing cycle, it won't hurt you at all.  If you can pay it back half this bill and half next bill, that also won't hurt you that much.

    Your score will recover fairly quickly as long as you can pay that off in two months or less.

    Credit builds over time and over using during one month won't hurt that much if it is repaid quickly.

    • ron h
      Lv 7
      4 weeks agoReport

      Sort of right.

    • Login to reply the answers
Still have questions? Get your answers by asking now.