Credit Restoration Programs – Are They Enough to Keep You Fee Free?

So you’ve rehabbed your credit with a credit restoration or credit repair program: you could now be charged annual fees for paying your bills on time. In response to new credit regulations that limit when banks can raise interest rates on credit card and loan bills, banks executives are doing their best to maintain profits. This translates to an increase in fees of all types, as well as new fees being introduced.

One of the most common ways banks are trying to recoup their money is by charging (or increasing the rate of) annual fees for each account. Previously, people who have gone through a credit restoration or credit repair program have been immune from such fees. So, what’s the reward for being a reliable customer who pays his or her bill on time?

Apparently, there isn’t one. People with good credit who find that they’re being charged with annual fees have the choice of either paying it or closing their account and opening another one elsewhere. Unfortunately, if you’ve had the credit card account for a while, it can potentially hurt your credit score to close it out. Suddenly, people who have had good credit all their lives may end up needing to join a credit repair program – just to avoid paying a higher annual fee.

If you think this doesn’t sound fair, you’re not alone. People are getting outraged over the fee hikes, while bank analysts are trying to figure out exactly how much they can raise annual fees while without losing a huge chunk of customers. Most people who have gone through a credit restoration program already put up with ridiculously high interest rates, and now they’re being told to swallow an additional annual fee on top of that.

So, what’s a person to do? The first step is to check your credit card statement to see if you’re one of the people getting charged!  If you are – contact us and we’ll advise you on what steps to take.