Is there anything worse than the thought of being charged some type of credit card fee?
When applying for a credit card, it’s imperative to understand the fees associated with the offer. If you don’t, there’s a chance that you could be surprised by one of these at some point in the future – and that’s not a situation you want to face.
So, with all that in mind, let’s review some of the most common credit card fees:
- Annual fee. This is one of the most common fees, with you being charged for nothing more than carrying a specific credit card.
- Balance transfer fee. Are you moving a balance from one credit card to another? If so, expect to pay a balance transfer fee (typically in the three percent range).
- Cash advance fee. If you’re interested in borrowing cash against your credit card, don’t assume that you can do so for free. Most credit card companies charge a fee, so you should expect to pay this.
- Foreign transaction fee. As the name implies, this fee comes into play when making any purchase outside of the United States. Note: most travel credit cards don’t have this fee, so you may want to consider one of these offers.
- Late payment fee. This is easy enough to understand, right? You can expect to be hit with a late payment fee if your minimum payment does not arrive by the due date.
- Over-the-limit fee. If you don’t know the finer details of this fee, in regards to your particular offer, contact your credit card company to learn more. Depending on the card, your purchase may be rejected if it will take you past your limit, thus eliminating the possibility of this fee. However, this is not always the case.
Are these the only credit card fees? Of course not. For this reason, you should request a fee schedule from your credit card company. With this in hand, you’ll always know which fees exist, allowing you to create a strategy for avoiding them.
