Understanding and Avoiding Credit Card Fees
Credit cards typically come with a lot of fine print regarding fees, penalties, and other charges you can rack up, occasionally just by accident. A few significant ones to know about:
Late fees: If you miss to pay at least the minimum amount before the due date, you may be hit with a late fee. Moreover, your delayed payment or failure of payment will be reported to the credit bureaus that in turn will be reflected in your credit history, which can be hurtful to your credit score.
Over-limit fees: If you surpass the credit limit on your card, your credit card provider may charge you an over-limit fee. Also some of the credit card providers will merely decline the transaction for any charges that exceed your credit limit when you try to make a purchase.
Annual fees: This is the yearly fee (onetime payment – sometimes waved off for the 1st year as joining bonus) you pay just to have the card. Several credit cards are available without annual fees, even though those with annual fees may have rewards programs that provide greater rewards on your purchases.