Dormancy fees could affect customers trying not to use their credit cards

Whilst credit cards have certainly come in useful for many people in the current financial climate, overstretched finances and the threat of job losses has resulted in many consumers trying to avoid using their credit cards other than in dire emergencies, preferring instead to keep the card to one side and only use it if and when it is really needed.

However, whilst this may seem like the sensible thing to do given the financial climate some people that are doing this are finding themselves being penalized but their credit card provider.

This is because some providers are charging dormancy fees to customers who are making no transactions on their credit cards for a period of twelve months, and this can amount to an unnecessary annual charge.

One credit card provider, American Express, has recently announced that it will be charging customers with its platinum card £20 a year simply for failing to make an transactions on the card in a twelve month period.

Experts have given a number of tips for those that want to avoid paying these unnecessary annual charges. One option is to cancel the account if there is no outstanding debt and no real intention to use the card.

Another option is to transfer any outstanding balance from the card onto a balance transfer card, and then continue to use the card as an emergency back up without having to pay any annual dormancy fees.

It is thought that whilst American Express has already brought in this charge for many of its customers, more and more credit card providers could end up applying such charges to the accounts of customers as they try and increase their revenues.

Tags: creditcard fees, account, credit card provider, consumers, thing