Making Sense of Credit Card Fees

Apart from April (annual percentage rate) and financial fees, most credit cards have many 'fees' associated with their use. Some fees cannot be avoided with certain cards (such as annual fees or program participation fees), while certain circumstances trigger others. The most common fees are listed below. To get a better idea of ​​how much your credit card costs to be used for a year, check your card's terms and conditions and your user agreement to see which fees might apply to you.

Annual fee: 
An annual fee is charged for card privileges, regardless of whether you have used it or not. Many credit cards do not offer yearly fees, low-interest rates for their best customers, or excellent credit. If you try to recover from a fight with bad credit, your only choice might be a card with a relatively high annual fee. In this case, look for one with the lowest APR you can get, and be careful not to trigger other costs.

Cash withdrawal fee:  
When you use your credit card to get a down payment, there are often fees for cash withdrawals. It might be a fixed fee per cash withdrawal (say $ 5, no matter how much cash you borrow), or a percentage of the amount of the down payment - 5%. This fee is in addition to the interest you will pay on this amount.

Balance transfer fee  
Usually, when you transfer balances from one card to another, the credit card company will charge you the balance transfer fee. Like the cash withdrawal fee, it can be a flat rate or a percentage of the transfer amount.

Credit Card Fees

 Late Payment Fee 
 If your payment is not received and posted by your credit card company after the due date, you will be charged late payment fees. Late payment fees will be added to your credit card balance. In many cases, if you are late with payments more than once, or several times in a certain period, your interest rate will also increase in addition to the late payment fees.

Credit limit fee exceeds the limit:  
If you exceed the credit limit on your credit card, you will often be charged a fixed fee as a penalty.

Credit limit-increase fee:  
You usually have to pay the cost of increasing the credit limit if you ask that your credit limit be raised.

Setup fee:  
When you open a new credit card account, the credit card company can charge a one-time setup fee ranging from $ 19 to $ 149.

Return item fee: 
This is the reflected check fee. If you make a payment on your account by check, and your bank returns the test for insufficient funds, the credit card company may charge you a check fee.

Other costs: 
Depending on the credit card company and the card offered, you may be responsible for other costs, including fees for making payments by telephone, for checking your account online, for making online bill payment services, or for providing other customer services. Be sure to read the terms and conditions of your credit card to see what fees and fees you must pay.

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