Fee-harvesting Credit Cards

A fee-harvesting credit card is a type of credit card that is designed to generate fee income for the issuer. Typically, these cards will have high annual fees, high-interest rates, and low credit limits. The goal of the issuer is to generate as much fee income as possible from cardholders who either don't use their card often or who carry a balance from month to month. The Credit CARD Act of 2009 limited the total amount of fees that can be charged on these cards to 25% of the credit limit for the first year.