Wouldn’t it be nice if you never had to think twice about paying a credit card fee? This may be the perfect setup, but it simply doesn’t exist.
It doesn’t matter if you are applying for a new credit card or attempting to learn more about the one you already have, it’s imperative to focus some of your time on the associated fees.
While there are many of these to consider, all of which could haunt you at some point, some are more common than others. Here are the credit card fees you need to keep your eye on:
• Annual fee. As the name suggests, this is a fee you pay every year for doing nothing more than keeping your account open.
• Balance transfer fee. This comes into play when you transfer the balance of one credit card to another.
• Cash advance fee. Are you interested in borrowing cash against your credit card? Many people think this is free, but there is actually a fee attached in most cases.
• Foreign transaction fee. If you plan on using your credit card outside the country, make sure you know if there is a fee for doing so. Chances are that you will be charged somewhere in the two percent range.
• Late payment fee. If you don’t make a payment by the due date this fee will be assessed to your account.
There is no escaping some of these fees, but others can be negotiated from time to time. For example, if you mistakenly paid your balance a day late, contact your credit card company to see if they will waive the late fee. Most of them will do so as long as this isn’t a habit.
As long as you are familiar with your credit card’s fees, you will never find yourself surprised and angry.