With the new credit card protection legislation due to take effect in 2010, I expect that some of our credit card providers will try to charge us an annual fee to offset loss revenue. As far as we're concerned, any fee charging credit will not get any of our business. Why, because I only use a credit card for convenience and the credit card company already makes about 2% on all my purchases. We're not paying an annual fee to a credit card company that give them the privilege of making money on our purchases.
Currently, we have three credit cards, Costco American Express, Discover, and Visa. The American Express and Discover are cash back cards, while the Visa earns Holiday Inn Priority points.
In the unforeseen situation where all three credit cards levy an annual fee, we go back to paying with either checks or cash, since neither of these methods of payment carry a fee.
For more on The Practice of Personal Finance, check back every Wednesday for a new segment.
This is not financial advice. Please consult a professional advisor.
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