Making Sense of Credit Card Fees

In addition to the APR (annual percentage rate) and the finance charges, most credit cards have a number of 'fees' associated with their use. Some fees are unavoidable with a particular card (like an annual fee or a program participation fee), while others are triggered by certain circumstances. The most common fees are listed below. To get a better idea of what your credit card may cost to use over the course of a year, check your card's terms and conditions and your user agreement to see which fees may apply to you.

Annual fee:

An annual fee is charged for the privilege of having the card, whether you ever use it or not. Many credit cards offer no annual fee and a low interest rate to their best customers, or to those with excellent credit. If you're trying to recover from a bout with bad credit, your only choice may be a card with a relatively high annual fee. In that case, look for one with the lowest APR you can get, and be careful to avoid triggering other fees.

Cash advance fee:

When you use your credit card to get a cash advance, there is often a cash advance fee. It may be a flat fee per cash advance (say $5, no matter how much cash you borrow), or a percentage of the amount advanced - 5%. This fee is in addition to interest that you will pay on the amount.

Balance-transfer fee

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

Late-payment fee

If your payment is not received and posted by your credit card company after the due date, you will be charged a late payment fee. The late payment fee will be added to your credit card balance. In many cases, if you are late with a payment more than once, or a certain number of times within a specified period, your interest rate will also rise in addition to the late payment fee. Over-the-credit-limit fee:

If you go over your credit limit on your credit card, you will often be charged a flat fee in penalty.

Credit-limit-increase fee:

You usually must pay a credit limit increase fee if you request that your credit limit be raised.

Set-up fee:

When you open a new credit card account, the credit card company may charge a one-time setup fee which may be anything from $19 to $149.

Return-item fee:

This is essentially a bounced check fee. If you make a payment on your account by check, and the check is returned by your bank for non-sufficient funds, the credit card company may charge you a returned-check fee.

Other fees:

Depending on the credit card company, and the card offered, you may be liable for other fees, including fees for making payments by phone, for checking your account online, for establishing an online bill paying service or for providing other customer service. Be sure to read your credit card's terms and conditions to see what charges and fees you're liable for paying.

Joseph Kenny is the webmaster of the credit card comparison sites http://www.credit-cards-info.com/ and also http://www.creditcards121.com/

---

10 Ways of Reducing the Risk of Identity Theft

1- Check your credit report regularly2- Secure personal information in... Read More

New Credit Scoring Model Could Help Millions

Mark and Beth, a young married couple in their twenties,... Read More

The Things That UK Lenders Like to See on Your Credit File, (and? What They Don?t Like to See!)

Lenders are quite fussy about what they like to see... Read More

Understanding Credit Report Score

Understanding credit report scores is important when you see your... Read More

Low Interest Credit Cards Have Many Advantages

When credit cards are used wisely they can be very... Read More

Credit Report Hassles

There is no end to the amount of pain that... Read More

Triple AAA in 30 Days

Have you ever wonder about how to get good credit... Read More

Free Credit Report ? A Website Typo Could Be Costly

In 2003, Congress passed the Fair and Accurate Credit Transactions... Read More

Protect Yourself Against Identity Theft

Identity theft is when someone uses, without permission, your personal... Read More

Building Good Business Credit After Bad Credit

Can you establish good business credit if you have bad... Read More

7 Consumer Credit Laws You Should Know if You are Trying to Repair Your Credit

There are seven consumer credit laws you should be aware... Read More

All About Balance Transfers

What is a balance transfer?A balance transfer can be explained... Read More

Bad Credit? No Credit? Yeah, Its a Problem.

Many companies use the slogan "Bad Credit? No Credit? No... Read More

How Can A Qualified Mortgage Consultant Help Boost Your Credit Scores?

Consumers interested in purchasing or refinancing a home will pay... Read More

Credit Card Benefits and Drawbacks

Credit cards have both benefits and drawbacks. It is wise... Read More

How You Can Help Prevent Identity Theft

How can I prevent Identity theft from happening to me?... Read More

Fight Credit Card Fraud with Common Sense

By now, you have undoubtedly heard of credit card fraud,... Read More

What Should I Do If I?ve Become a Victim of Identity Theft?

Identity thieves take advantage of everyday opportunities to discover your... Read More

Credit Report Secrets: Do You Know What They Reveal?

If you've ever applied for a credit card or loan,... Read More

How to Repair a Bad Credit Rating

If you have a bad credit rating, then you might... Read More

Repair Your Credit - The Right Way!

How to Repair a Bad Credit Rating?The Right Way!If you... Read More

Which Business Credit Cards with Reward are the Best?

Thinking of applying for a credit card with a reward... Read More

The Best Strategy To Erase Credit Card Debt

Credit card debt is a growing sickness in the United... Read More

Credit Cards: How To Use Them

Credit cards can be a very quick way of getting... Read More

Collection Agencies: What Do They Do?

Collection agencies are businesses that collect past-due bills and accounts... Read More

Pitfalls of the Credit Industry

The credit industry if rife with pitfalls. If you have... Read More

Identity Theft : They Got Him

His hard earned money? Gone. Creditors on his back everyday.... Read More

Understanding Credit Card Penalties

Because most of us have one or two credit cards... Read More

Update Your Computer System With Bad Credit Computer Financing

The moment I placed myself in front of the computer... Read More

Warning: Todays Non Profit Credit Counselors Are Yesterdays Bill Collectors!

Here's a dirty secret, today's "non profit credit counselors" are... Read More

Top 7 Factors to Consider While Reviewing Credit Card Offers

Credit cards have migrated from being hip or convenience product... Read More

Dont Trade Your Future for Todays DooDads

"Easy Low Down Monthly Payment," "Buy Now Pay Later," "You... Read More

Clean Credit Report: Easily Raise Your Credit Score 100 points

Clean Credit Reports, your credit report contains information about where... Read More