Credit Card Fees

Most everyone has at least one credit card; some people use them responsibly while others don’t. And while there have been new credit card laws passed to help protect the consumer, it’s important to stay informed. Here are some credit card fees you may be charged, depending on what card you have and how you use it.

• Foreign Transaction Fee This is an extra fee you may be charged when travelling outside your home country. This may be a flat fee or a percentage, but is used to pay currency conversion and other costs.
• Statement Fee Some credit card companies will charge you for mailing out a paper statement each month. Switch to electronic billing if you want to avoid this fee.
• Balance Transfer Fee If you want to consolidate your credit cards or transfer a balance to another card, some credit cards will charge you – usually a percentage of the transfer.
• Reward Recovery Fee If you don’t pay your bill or break another rule, some credit cards will punish you by taking away some of your rewards points. They then charge you to restore them back.
• Reward Redemption Fee This credit card fee is charged by some companies when you finally cash in the reward points you’ve built up.
• Annual Fee This is simply a fee charged each year for having the card.
• Cash Advance Fee If you borrow against your credit card, you’ll often be charged for the advance.
• Activity Fee Some credit cards will charge you for not using your card during a given period of time.
• Lost Card This is a fee related to replacing a lost card.
• Over Credit Limit Fee If you go over your credit limit, your credit card will likely charge you a fee.
• Late Fee This credit card fee is if you don’t pay your bill on time.

 

Do what you can to avoid these credit card fees by tracking your finances and being familiar with your contract. You don’t want any surprises at the end of the month.