Common Credit Card Fees
Credit cards aren't free. find out some of the most commonly charged credit card fees and when you might get charged. since different types of credit cards charge different kinds of fees, it's a good idea to know when your credit card might charge you.
ANNUAL FEEWhat is it: a yearly fee charged for the convience of having the credit card
Which cards have it: mostly secured cards, charge cards, and subprime credit cards
How much is it: varies, usually from $25 to $300/year
How often is it charged: once a year
How to avoid it: ask your creditor to waive the fee. Some credit cards automatically waive the fee if you make a certain amount of purchases in a year.
APPLICATION FEE
What is it: A fee charged when you make an application for a credit card
Which cards have it: All credit cards can have it, mostly secured credit cards
How much: varies by credit card, $10 - $50 per application
How often is it charged: once each time you make a credit card application
How to avoid it: ask to have it waived or apply for a card without an application fee
CASH ADVANCE FEE
What is it: making a cash advance
Which cards have it: cards that allow you to withdraw a cash advance
How much: usually 1-3% of the advance per cash advance transaction
How often is it charged: once each time you make a cash advance
How to avoid it: use a card that doesn't charge fees for cash advances
BALANCE TRANSFER FEE
What is it: making a balance transfer
Which cards have it: cards that allow balance transfers
How much: usually 1-3% of the amount transferred per transfer
How often is it charged: once per balance transfer
How to avoid it: use a card that doesn't charge balance transfer fees
FINANCE CHARGE
What is it: a monthly charge for the the convenience of carrying a credit card balance beyond the grace period
Which cards have it: all cards except those with zero percent interest rates
How much: depends on your card's APR, balance, and method of calculating finance charge How often is it charged: once per billing cycle
How to avoid it: pay your balance in full before the grace period expires
LATE FEE
What is it: a charge for making less than the minimum payment or after the payment due date or both
Which cards have it: all cards
How much: $15 - $39 each billing cycle you miss a payment or pay less than the minimum
How often is it charged: once each billing cycle you are late
How to avoid it: pay your bills on time or call your creditor ahead of time to make payment arrangements
OVER-THE-LIMIT FEE
What is it: having a balance above your credit limit
Which cards have it: all cards with a credit limit
How much: $15 - $39 each billing cycle you are over the limit
How often is it charged: once each billing cycle you are over your credit limit
How to avoid it: Keep your credit card balance below the credit limit
RETURN CHECK FEE
What is it: having a payment check returned from your bank
Which cards have it: all cards
How much: varies, ~$38
How often is it charged: once each time your check is returned by the bank
How to avoid it: make sure you have funds available in your account when you write a check for payment
