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/
The process of clearing credit can be laborious and frustrating.... Read More
Which of the following is the biggest threat to your... Read More
Identity theft is a growing concern among Americans, and rates... Read More
Establishing credit and wisely managing your credit becomes easier when... Read More
Credit Cards and Loans sounds like just two things, but... Read More
Do you know what your credit card is truly costing... Read More
Like It Or Not, You Have A Score To Settle!... Read More
The articles and tips provided on this site are intended... Read More
In "Become the Squeaky Wheel" a book recently published, Michelle... Read More
Are you thinking of buying a house? Do you want... Read More
By far the greatest invention the banks have ever come... Read More
The moment I placed myself in front of the computer... Read More
Few things influence the home buying process more than your... Read More
Establishing credit is one of the most important things you... Read More
There are times when you may be turned down for... Read More
Building a good credit history is important. If you have... Read More
Online car finance is convenient. You can apply over the... Read More
"Easy Low Down Monthly Payment," "Buy Now Pay Later," "You... Read More
Believe it or not, the way society, especially the commercial... Read More
Spending HabitsSo you've just got your credit card. The first... Read More
"Erase Bad Debt !""Remove Negative Items From Your Credit Report"You've... Read More
Credit is a funny thing. It can be a useful... Read More
What Is Your Credit Rating Now?If you have any charge... Read More
Some credit cards offer a cash advance option. But how... Read More
What are the APRs charged by the credit cards in... Read More
Will lenders really love you for having a good credit... Read More
The Federal Fair Credit Reporting Act (FCRA) is designated to... Read More
I remember back when I was 18 and completely oblivious... Read More
"Cut Your Payments in Half!" the headline screams. "Consolidate Your... Read More
You may already have 2 or more credit cards in... Read More
The three major credit bureaus, Experian, Equifax and Trans Union... Read More
It may seem like a simple question but its important... Read More
Most of us want a good credit report to obtain... Read More
A good credit history is critically important for the consumer.... Read More
As I am not from the US, I had no... Read More
Here are some useful credit card tips for you to... Read More
Listed below is a useful guide to credit card terms.... Read More
Your credit report is a very important piece of the... Read More
In the olden days, about 10 years ago, before the... Read More
Until recently lawyers for victims of credit damage had little... Read More
Imagine opening your credit card statement one morning and discovering... Read More
A line of credit, roughly defined, is the amount of... Read More
Your credit is the most important thing you have other... Read More
In their quest to get you to sign up for... Read More
There are many evils associated with credit cards, but there... Read More
It is the scourge of our age: identity theft. Thieves... Read More
Have your read your credit card contract through completely? Do... Read More
What FACTA means is that if you, as an individual,... Read More
WHAT IS HIRE PURCHASE/CONDITIONAL SALE?Although people often talk about "buying... Read More
If gold medals were awarded for marketing consistency, the credit... Read More
It's not as hard as you think to raise credit... Read More
Here are some useful tips on using credit cards. Whether... Read More
Introduction In this article, a presentation is made of the... Read More
Congress passed the Fair Credit Reporting Act several years ago... Read More
Creditors will measure your credit rating based on the following... Read More
In the high tech world of today, credit card fraud... Read More
With so many low interest credit cards on offer, how... Read More
Establishing credit is one of the most important things you... Read More
If you're like the average person, let me warn you... Read More
Here's a dirty secret, today's "non profit credit counselors" are... Read More
For those of us who know how to use them... Read More
Having a credit card is a wonderful convenience for those... Read More
INTEREST BEWARE, THERE'S SAFETY IN NUMBERS!Note: The following is part... Read More
I didn't think it was possible. But it is. Folks,... Read More
If you want to purchase a new home or refinance... Read More
Whether you have no credit or damaged credit, secured credit... Read More
Credit |