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?
- Dan BLv 72 weeks 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.
- oklatomLv 74 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.
- Casey YLv 74 weeks ago
You'll be fine. Just dont use the card next month and you should have it paid off...
- StephenWeinsteinLv 71 month 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.
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- Beverly SLv 71 month ago
As long as you pay at least the minimum payment it won't hurt your credit..
- Anonymous1 month ago
Most have no fees. Sounds like you got a bad one that does. Should have gotten a discover instead.
- MichaelLv 71 month ago
There's not much advice to give. You need to pay it, ideally in full.
- AnnLv 71 month 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.
- 1 month 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.
- ShayLv 71 month 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.