Credit News

I’m the kind of guy who pays off my credit cards every month, and only uses credit cards that don’t have annual fees or some other charges other than late fees or interest. I don’t buy stuff I can’t afford. My wife is the same way.That’s one of the reasons I married her.

So what that means is that money essentially sits in our accounts, earning interest for us, and the credit card companies pay us some of the money they collect from people who aren’t like us, in the form of cash back or rewards.

Hover recent legislation to help out people who buy things they can’t afford is prompted credit card companies to make the difference by punishing people like me, as Sandra Block reported in USA Today.

Starting next year, Bank of America will charge a small number of customers an annual fee, ranging from $29 to $99. The bank has characterized the fee as experimental. But card holders who have never carried a balance or paid late fees could be among those affected.

Citigroup, meanwhile, has started charging annual fees to card holders who don't put more than a specific amount on their cards, typically $2,400 a year. Other banks are charging inactivity fees if customers don't use their credit cards during a specific period of time. You heard that right: You could be spanked for staying out of debt.

Ain't that wonderful? All is not lost though.

For example, the Fidelity Rewards American Express card pays 2% of cash back to a Fidelity account, with no limits on cash rewards and no annual fee.

If you don't care about rewards and just want a credit card that doesn't charge an annual fee, consider applying for a card through a credit union. Many credit union cards charge no annual fee and offer below-average interest rates.

Associations, such as the USAA, which provides products and services for military personnel and their families, also offer good deals on credit cards, according to Consumer Reports.

Check out the whole story for more tips.

If all my cards end up charging a fee because I stay out of debt, I will simply drop them and use my credit union debit card, which I can use just about anywhere without paying any fees. Sure, my credit score will go down, but I'm not planning on moving and I'll save up and buy my next car with cash which is what I did with the last car we purchased.

I would be more apt to stick with a credit card if the company dropped cash back or other rewards instead of charging people like me fees. It is their choice what they want to do with their cards. It is my choice whether or not I will keep using them.