You’ll have a hard time finding a credit card that doesn’t have fees, that’s if such a credit card exists at all. Credit card companies make money by charging fees to cardholders. But, if you know what the fees are, you can usually avoid them by using your credit card a certain way.
Annual Fee
A credit card annual fee is a yearly fee that you pay simply for having a credit card. Many reward credit cards and secured credit cards come with an annual fee. Some credit card issuers will waive the annual fee as long as you use your credit card within a certain period of time. Others waive the annual fee when you charge a certain amount on your credit card. It’s possible to find a credit card that doesn’t charge an annual fee.
Balance Transfer Fee
Whenever you transfer one credit card balance to another, you’re charged a balance transfer fee. The will either be a percentage of the balance transferred or a flast fee.
Cash Advance Fee
You’ll be charged a cash advance fee when you withdraw cash against your credit limit. The cash advance fee will either be a percentage of your total cash advance or a flat fee that’s predetermined by your credit card issuer.
Credit Limit Fee
The credit limit fee is a fee your credit card issuer charges when you exceed your credit limit. Credit card issuers can’t charge a credit limit fee unless you opt-in to credit limit charges. That means you give your credit card issuer permission to process a transaction that puts you over your credit limit.
Finance Charge
A credit card finance charge is a fee assessed when you carry a credit card balance beyond the grace period. Your finance charge is calculated based on your credit card balance and your interest rate. You can avoid paying finance charges by paying your balance in full each month.
Late Fee
A late fee is a fee you pay for failing to make your minimum payment by the due date. If you make less than the minimum payment or your card issuer doesn’t get your payment by the due date, you’ll be charged a late fee.