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Loading ...Credit cards are not just charging you interest, they also come with fees. Some of them you probably have heard of already, but lenders have a lot more tricks in the hat for you. If if you don’t watch out, your available credit can be easily eaten up by all kinds of “extra” charges. Actually 17 of them.
Annual Fee. The simplest and most common fee is the Annual Fee. It is usually charged on secured credit cards, cards with extra benefits (such as point or cashback programs) or low-credit-score cards. The Annual Fee is charged either monthly or annually, and it’s usually in the margin of $39-$59.
Program Fee. Some cards have a Program Fee. It is usually charged once, when the card is activated. It is common for credit cards for individuals with poor credit.
Participation Fee. Lenders have also came up with a Participation Fee, which is similar to the Annual Fee. It is charged either monthly or annually, and it’s usually in the margin of $29-$159.
Application Fee. When you first open a card, you can also be charged an Application Fee. Usually in the margin of $19-$59.
Reload Fee. Some lenders charge you a Reload Fee. It is common for prepaid plastics or cards for individuals with poor credit. Usually varies depending on the amount that you are paying towards the card, although some companies have a fixed rate and a reload limit per month.
Convenience / Transaction Fee. Another charge that can be imposed on your plastic is the Convenience or otherwise called Transaction Fee. It is usually charged every time when the card is used, some companie will give 2-3 free sipes per month.
Late Fee. As it’s name suggests, this is a penalty fee that is charged to your account in case you are late with your payment. Usually that fee also means that you APR’s are going up as well.
Inactivity Fee. Yes, there is a fee for that also. Some lenders will charge you if your card doesn’t carry a balance over a certain time period. Usually it is in the amount of 2-3 dollars but still, it’s your money.
Identity Theft Program Fee. Some cards come with a “Identity Theft” program and you are enrolled in it by default at the moment you activate your card. It is usually in the amount of $5-$10 per month.
Balance Transfer Fee. It is either a percentage of the funds transferred or a flat amount.
Convenience Check Fee. This fee falls into the Balance Transfer Fee & Cash Advance Fee category. It is charged when you use one of those “Convenience Checks” that are attached to your credit card documents when it arrives in the mail. You can use those checks to either do a balance transfer or buy a money order. Your bank treats them as a cash advance.
Cash Advance Fee. This one is charged when you take a cash advance form your plastic. Usually is a percentage of the funds withdrawn or a flat amount.
ATM Fee. The ATM Fee is ordinarily charged when you get a cash advance trough an ATM that doesn’t belong to your bank.
Over-the-Limit Fee. As it’s name suggests, you are being charged because you were shopping too much and went over your credit line. Enough with these shoes!
Foreign Transacton Fee. This charge comes in effect if you are using your card to pay something in a different currency, for instance if you are on vacation in Ireland and you swiped the card there. SOme banks charge those fees immidiately when the transaction is performed, other do it at the next billing statement.
Duplicate Statement Fee. You ever needed a duplicate statement? Well, there is a fee fr that also, and it’s called a Duplicate Statement Fee. Usually $5-$15.
Card Replacement Fee. Yes, some lenders are so cheap they will even charge you for a new card, if you lost your plastic. Could be $10-$25.
Final thoughts: With 17 possible fees that you can be charged, you really have to pay attention to your statement and the “fine print” on your credit cards. Some of these fees are pretty high and if they stack up you can be in a lot of trouble. Examine your statements peridodically, and call your creditors to make sure that you are noy enrolled into some kind of unwanted program.
Tags: credit | fees | charges | statement | bank | lender | atm | annual
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February 20th, 2008 at 5:20 am
Thanks for the comprehensive list of charges for credit card.
It’s very common for card holders to overlooked these hidden charges.
And it’s more often than not, most applicants do not bother to read the fine print when they apply for a credit card.
The rule of thumb is to read carefully before applying a credit card.
April 19th, 2008 at 1:16 pm
Beware of credit card companies like Direct Merchants Bank who “hide” account balances by charging new fees at the beginning of billing cycles instead of the end. Thus, credit holders will receive a statement that really doesn’t reflect an accurate balance in the account, leading some to incur fees when the limit is breeched.
Particularly troublesome is if these credit holders pay the minimum amount on the statement, the payment will not be enough to reduce the balance beneath the limit, thus leading to more fees. ALWAYS CHECK WITH YOUR BANK ABOUT THE PAYMENT AMOUNT NEEDED TO REDUCE THE BALANCE BELOW THE LIMIT WHEN FINANCE AND OTHER FEES ARE ATTACHED IF YOUR BALANCE IS HIGH.
Direct Merchant is not the only one but its practice is particularly egregious as it allows the bank to carry over an over limit without the credit holder’s awareness and charge two fees.
All in all, credit card companies are engaged in rather despicable practices and the best way to handle them is to keep low balances. There is no certainty in life other than death, taxes, and credit card fees.