Understand Types Of Fees Credit Cards Can Charge
Saturday, March 31, 2012, 2:00 AM | Leave Comment
Before you choose a credit card for yourself, understand the types of fees the companies can charge. Most credit cards charge fees under certain circumstances. Read the information in your credit card agreement to see if there are other fees and charges. Read the fine print so there is no ambiguity in your mind what you are getting into:
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Annual fee
Sometimes billed monthly. Charged for having the card.
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Cash advance fee
Charged when you use the card for a cash advance; may be a flat fee (for example, $20.00) or a percentage of the cash advance (for example, 15%).
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Balance-transfer fee
Charged when you transfer a balance from another credit card. Your credit card company may send you “checks” to pay off the other card. The balance is transferred when you use one of these checks to pay the amount due on the other card.
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Late-payment fee
Charged if your payment is received after the due date.
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Over-the-credit-limit fee
Charged if you go over your credit limit.
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Credit-limit-increase fee
Charged if you ask for an increase in your credit limit.
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Set-up fee
Charged when a new credit card account is opened.
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Return-item fee
Charged if you pay your bill by check and the check is returned for non-sufficient funds. That is, your check bounces.
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Pay-by-phone fees
Some credit card companies charge a fee if you pay by telephone. That is, if you arrange by phone for payment to be transferred from your bank to the company.
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Reporting-to-credit-bureaus fees
Some companies charge a fee to cover the costs of reporting to credit bureaus.
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Reviewing-your-account fees
Some companies charge a fee for reviewing your account and providing other customer services.
