The 5 Most Common Credit Card Fees

If you have a credit card you know that there can be a fee on just about anything. What are some of the most common credit card fees and how can you avoid them?

When you are looking for a new credit card you want one with lots of added perks and as few fees as possible. While you won’t be able to escape every fee you can certainly find a card with a few that you may never encounter. Here are some of the most common credit card fees out there.

Annual Fee

An annual fee is a fee that is assessed once per year just for having the card open. The fee amount varies depending on the creditor and the card. They are pretty easy to avoid if you make sure you are reading the terms and conditions before applying for a card. If the card you want has a fee, ask the creditor if it can be waived. But if it isn’t a large amount it may be worth it if the card has everything else you want.

Balance Transfer Fee

A balance transfer fee is a fee that is assessed whenever you are transferring a balance of one card onto another. The fee is usually a certain percentage of the amount of money being transferred. This fee is easy to avoid if you don’t transfer a balance or only transfer a small amount. If you think you may want to transfer a balance to consolidate make sure you pay attention to the fee before applying for the card.

Late Fee

A late fee is an amount charged to you when you miss a payment. The best way to avoid this is to pay your credit card bill on time! It is unlikely that you will be able to find a card that does not have this kind of fee.

Cash Advance Fee

If you ever take a cash advance from your credit card you will be charged a Cash Advance Fee of 3-5 percent of the amount you are withdrawing. In addition to being charged a fee you will also be charged interest on the amount you withdraw. Your best bet is to never withdraw cash from your card. This can be a dangerous and costly habit.

Application Fee

If you are looking to open a new line of credit you may be charged an application fee of no more than 25 percent of the beginning limit of your new account. To avoid this make sure you read the terms and conditions before you apply for any credit card or line of credit.

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