list of the most common credit card fees and charges:
- Annual fee: This is a fee that is charged by the credit card company each year, regardless of how much you use your card. Annual fees can range from $25 to $500 or more.
- Interest rate: This is the percentage of interest that is charged on your outstanding balance each month. Interest rates can vary widely, depending on the type of credit card and your credit score.
- Late payment fee: This is a fee that is charged if you make a payment after the due date. Late payment fees can range from $25 to $35 or more.
- Over-the-limit fee: This is a fee that is charged if you spend more than your credit limit. Over-the-limit fees can range from $25 to $35 or more.
- Foreign transaction fee: This is a fee that is charged for transactions made in a foreign currency. Foreign transaction fees can range from 2% to 3% of the transaction amount.
- Cash advance fee: This is a fee that is charged for withdrawing cash from an ATM or bank teller using your credit card. Cash advance fees can range from $3 to $5 or more.
- Returned payment fee: This is a fee that is charged if you return a check or payment that was made with your credit card. Returned payment fees can range from $25 to $35 or more.
- Late fee waiver: This is a fee that is charged if you miss a payment but then pay it within a certain grace period. Late fee waivers can range from $10 to $25 or more.
It is important to understand all of the fees and charges associated with your credit card before you sign up for it. By doing so, you can avoid surprises and make sure that you are getting the best deal possible.
Here are some tips for avoiding credit card fees:
- Choose a credit card with no annual fee. There are many great credit cards available that do not charge an annual fee. By choosing a card with no annual fee, you can save money each year.
- Pay your bill on time and in full each month. This is the best way to avoid interest charges. If you can’t pay your bill in full each month, try to pay as much as you can to keep your balance low.
- Be aware of foreign transaction fees. If you travel frequently, be sure to choose a credit card that does not charge foreign transaction fees. These fees can add up quickly, so it is important to avoid them if possible.
- Avoid cash advances. Cash advances are often subject to high interest rates and fees. If you need to borrow money, consider using a personal loan or line of credit instead.
- Keep track of your spending. It is important to keep track of your spending so that you do not overspend. You can do this by setting a budget and tracking your spending each month.