Understanding your credit card fees is important, as falling into the hole of debt can be extremely detrimental.
Beyond interest, you will find many other fees you need to be aware of.
In this article, we want to take you through some of these fees to give you a better understanding.
You will be charged late fees if you fail to make the required minimum payment prior to the due date. These late fees typically fall within the range of $25 to $40. However, there might be additional fees tacked on, such as a raised APR.
If you typically pay your credit card bill off on time, though you were late this time for a strange reason, you might consider calling your credit card issuer to ask if they can reverse the fee. Usually, if you’re an upstanding customer, credit card companies will work with you.
There are some credit card companies that charge annual fees for maintaining an open account. This charge might be waived during the first year you have the credit card as some type of promotional offer to get you through the door.
However, cards that have high annual fees will also often have rewards their customers can take advantage of, including miles or cashback. With that said, there are still plenty of other options for those who want to take advantage of perks and benefits without paying fees.
Cash Advance Fees
A credit card issuer might provide you with an option to borrow cash, very similar to an advance. While we don’t typically advise this, as these cash advance interest rates can be incredibly high, often much higher than traditional interest rates, they can be helpful for those who need cash now.
It is also worth noting that you will probably get charged a cash advance fee when you withdraw your money for the first time. Sometimes, it will be a flat rate, such as ten dollars, though it can also be a percentage of the withdrawal amount, such as 5%.
Foreign Transaction Fees
If you pay for things in other countries, you may get hit with a foreign transaction fee. Typically, foreign transaction fees are 3% of the amount of your purchase. With that said, there are many credit cards that don’t have foreign transaction fees, which we highly recommend for those who find themselves traveling a lot.
It is important for you to check the terms of service on your credit card so you don’t have to deal with unexpected fees.
Here at Personal Tradelines, we love teaching consumers about credit so they can reach their credit goals.
Credit cards can be powerful tools if used properly. However, beyond credit cards, we offer authorized user tradelines for those looking for a serious credit boost.
We can’t make any promises, as that is not how the business of tradelines works. However, we do have a successful track record and a company policy built on reliability that extends to each and every one of our customers.
If you are ready to start your journey to better credit, make sure to get in touch with us.