Credit Cards Made Easy
Common Types of Credit Card Fees |
Most credit cards charge fees. While some credit cards will have unique fees, most carry the same fees. These fees include annual fees, late fees, over the limit fees, transaction fees and rewards program participation fees.
Annual Fees
Annual fees are periodic fees charged every year on your anniversary date. This fee is a type of maintenance fee. Typical annual fees range between $25 and $150. However, most are under $75.
Late Fees
Late fees are another common fee charged by credit cards. They are assessed when your payment is not received by the due date. Late fees can be a set fee, or they can be based on your credit balance.
Over the Limit Fees
Over the limit fees, as their name suggests, are fees charged for you going over your credit limit. Some credit cards are a little forgiving if you go slightly over your credit limit, while other will assess the fee if you are even a penny over the credit limit. Either this fee can be based on your current credit balance or it can be a set amount.
Transaction Fees
Transaction fees are also common fees, which are typically based on the size of the transaction. The most common transaction fees include balance transfers, cash advances and purchases made in foreign countries. The average transaction fee is three percent of the transaction.
Rewards Program Participation Fee
Some credit cards charge a fee for participating in the rewards program. This fee is usually based on a percentage of your reward's balance. This fee typically isn't very much, but it does add another expense to the cost of using your credit card.