If you get a credit card but don't use it?

Question

You don't have to pay anything right?

Answer 1

No - unless your card has a yearly fee. In which case, once a year, that charge will appear. Look on your agreement to see if there is a fee for having the card.

Answer 2

It all depends on what kind of credit card we're talking about and who issued it.

Most major credit cards like American Express, Visa, MasterCard and so forth have annual fees. That means once a year you will be billed for an annual membership fee; usually around the $50 (US) range; some charge more and some charge less. It all depends on which company issues the card and how much their fees are. Be sure and watch the fine print so you have no unexpected surprises.

Some credit cards have no monthly fees or maintenance fees attached; so as long as you don't use it and don't have a balance owing, there is no charge to keep the card. Do watch the fine print, because some cards like that require you to make at least one purchase every six months or a year; otherwise the card will become invalid because of lack of use.

Other credit cards do have monthly fees, essentially for your having the privilege of carrying that card. Again, watch the fine print because some of the monthly fees, service charges and maintenance fees can sneak up on you and add up rather quickly. Especially if you only pay the minimum amount due every month.

Many well-known and well-respected financial experts recommend that you pay off a credit card bill in full every month; thus avoiding the outrageous interest charges. However, that's what banks and credit card companies are hoping for; that you'll make only the minimum payments - that's how they make their money. On the interest.

I know about how credit cards work because I used to work for one of the major Visa and MasterCard issuers here in the United States.

Be very careful.

Answer 3

Correct (unless your card has an annual fee ... find out if yours does.)

But in order to esblish 'good' credit, you should make a purchase and pay it back right away. This will show you are a responsible person and give you a good credit score. When you have a good credit score then most likely, when you ask for more credit, you will get it.

Answer 4

Only if you have a card that charges and annual feel. Ussualy cards that give airline miles or other such benefits will have like 50 annual fee that you have to pay.

But otherwise, as long as your balance is 0 you do not have to pay anything at all.

Answer 5

you need to check you agreement, i was about to apply for an american express card once only to discover it had a £40+ charge per year! Visa & Mastercard generaly speaking dont have an anuall fee, deffinatley go for a credit card they always come in handy!

Answer 6

Yes,
Unless there are fees associated with the card. Such as an annual fee.

Answer 7

you have to pay stamp duty to the government which is around 30 pounds if you use it once a year. You may have to pay quarterly or yearly fees though depending on your bank.

Answer 8

it would depend on your contract i have one i don't use but still pay a yearly insurance cover on it. mine is for when i am abroad so when i do use i have set it up so that the full amount goes out of my account each time so i avoid interest payments that way also

Answer 9

yes....you are perfectly right