Increase of credit card fees

Decrease of interest rates

As a reminder, the maximum interest rate for loans and credit cards has decreased from July 2016. While the old maximum rate was 15%, it is now 10% for personal loans, and 12% for credit cards. This interest rate applies to all unpaid – or partially paid – credit card balance.

Compensate for losses linked to the new rate

For the credit cards providers, this new rate leads to a shortfall. The main of fees increase is to compensate for those losses. If each provider offers different ranges of products, a study by moneyland.ch shows that the following fees increased in a significant way:

• Invoicing costs: up to 1,50 and 2 CHF for each printed invoice.
• Exchange costs: which apply to each purchase in foreign currency.
• Withdrawal charges: which apply to each money withdrawal from a cash dispenser.

How to minimise costs

There are two solutions to minimise credit cards costs: limit fees and limit the interest paid. In order to lower the paid interest, you should avoid partial payments. If it is not possible to pay a full bill, and if you consider a repayment over a number of months, then you should also consider a debt consolidation loan. Indeed, this solution will allow you to pay less interest on the amount you owe.