- Annual Fee: A yearly fee for having the card. For example, a rewards card might have an annual fee of $95.
- Late Payment Fee: A fee for not making at least the minimum payment by the due date. This can be up to $40.
- Returned Payment Fee: A fee if a payment is returned, usually similar to the late payment fee, often around $40.
- Over-the-Limit Fee: A fee for exceeding your credit limit, if you’ve opted into allowing transactions that put you over your limit. This fee can be up to $40.
- Cash Advance Fee: A fee for using your card to get cash, typically the greater of a flat fee or a percentage of the advance. For instance, $10 or 5% of the advance, whichever is greater.
- Foreign Transaction Fee: A fee for transactions in a foreign currency, often about 3% of the transaction.
- Balance Transfer Fee: A fee for transferring a balance from another card, usually a percentage of the transfer, such as 3%-5% of the transferred amount.
- Card Replacement Fee: A fee for replacing your card before its expiration date, often about $5-$10.
- Expedited Card Replacement Fee: An additional fee for quickly shipping a replacement card, which can be around $20-$25.
- Inactivity Fee: A fee for not using your card for a certain period, which can range widely but might be $10 per month after 12 months of inactivity.
- Expedited Payment Fee: A fee for making a last-minute payment, typically about $10-$15.
- Paper Statement Fee: A fee for receiving paper statements, usually about $5 per statement.
- Account Closure Fee: A fee for closing your account soon after opening it, often the cost of any bonus you received for opening the account.
- Debt Suspension or Cancellation Fee: A fee for optional services that let you suspend or cancel your debt in certain situations. This is typically a percentage of your balance, possibly about 1%.
- Credit Limit Increase Fee: Some subprime cards may charge a fee if you ask for and receive a credit limit increase.
- Returned Check Fee: If you try to pay your credit card bill with a check that bounces, you could be hit with a returned check fee. It’s typically around $35.
- Payment by Phone Fee: Some issuers may charge a fee for making a payment over the phone, possibly around $10.
- Credit Protection / Insurance: Some cards offer optional credit insurance programs, which can be a percentage of your ending balance, typically around 1%.
- Rewards Redemption Fee: Some credit cards may charge a fee when you redeem rewards, though this is rare.
- Statement Copy Fee: If you need an additional copy of a past statement, some issuers charge a fee for this, which can be around $5-$10.
These examples provide a general idea of the types of fees and their amounts, but the exact figures can vary based on the card issuer and the specific card. Always read the card’s terms and conditions carefully to understand what fees you may be charged. If anything is unclear, contact the card issuer directly for clarification.
- Q: What is an annual fee on a credit card?A: This is the yearly “membership fee” you pay for the privilege of using your credit card. Think of it as being part of an exclusive club, except you’re paying to spend your own money.
- Q: What is a late payment fee?A: It’s the credit card company’s way of saying, “We missed you and your money this month! Here’s a fee to remind you to pay on time.”
- Q: What is a cash advance fee?A: This is the fee you pay for treating your credit card like an ATM. If your credit card was a person, it would probably say, “I’m not an ATM, you know!”
- Q: What is a foreign transaction fee?A: This is a fee you pay when your card decides to take a trip overseas. It’s like your card saying, “Well, if I’m going to work on vacation, I might as well get something extra.”
- Q: What’s a balance transfer fee?A: This is the “welcome fee” you pay when you move debt from one card to another. It’s like paying for the help of a friend to move your stuff to a new house, but the friend is your new credit card.
- Q: What is an over-the-limit fee?A: It’s the credit card’s way of saying, “Whoa, slow down there, big spender! You’ve crossed the line!” It’s a fee for spending beyond your credit limit.
- Q: What is a card replacement fee?A: Lose your card often? This is the fee your card charges for the hide-and-seek game. It’s like paying for a new jersey because you lost the old one – again.
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