The 3 Common Credit Card Fees

Your satisfying personal financial position is incomplete without the right credit, for which choosing the right credit card is important. While choosing a credit card for you, there are lot many factors to consider, of which the credit card fees is the significant one. The fees associated with a credit card might not be the standard set of ones, as different companies tend to charge different fees suiting their policies, terms, and conditions, undoubtedly! But, few fees are typical, as every other credit card issuing company available today incorporate them, of which the following 3 are the top ones.

  • Annual fee

No credit card company can just like that let you have the card without any financial benefits for them, in where comes this annual fee! Yes, although not all credit card company, at all the times charge you with one, the special ones like the secured cards and premium cards expect you to pay some suitable annual fee for the specialized benefits you derive by using these cards. For example, in case of you willing to re-build your credit, the secured cards might help you appropriately and in that scenario, your annual fee doesn’t matter at all, as it is no match to your coveted financial reputation, certainly!

  • Over-the-limit fee

As the name suggests, it is the penalty charged against your act of exceeding the permissible credit limit that has been legally accredited by the 2009 Credit Card Act! That is, according to the law, you should have opted-in to allow the issuer to process the over-the-limit transactions and issue a charge for the same. Even in that case, the maximum charge allowable is 35$, which can happen only twice during the period when your balance stays over the limit.

Avoiding this fee isn’t any difficult, as you either can stay well within your credit limit or opt-out of the over-the-limit option, in which case your extra transactions would go unrecognized or in other words, declined!

  • Late fee

Almost, every credit card issuing company expect you to pay the minimum card payment before the due date and if not, you would be charged this late fee! Only once the billing cycle that you have defaulted, the late fee is charged that can be extended until your credit card is charged-off!

Of course, to avoid one, either make your payments on time or in case of your expected delay, talk to your issuer to make some arrangements, which can happen favorably if you have always been on time with your payments till date!