Fees Charged By Credit Card Companies To Use The Credit Card

Credit card companies charge various fees for credit card usage.

Knowing these important fees types will help a consumer choose the right credit card in a better way. These fees are important for the consumer as they increase the ownership costs of the credit card. The most important fees associated with credit cards are: Annual fees. This fees is charge on an annual basis and is charged just for keeping the credit card. Fees charged by credit card companies to use the credit card. Example an annual fee of 45$ per year.

When a credit card holder is not able to repay his monthly balance on time a late payment fee is charged. Late Payment fee. This fee is not charged if you repay even the monthly minimum, but if you miss an installment get ready to pay the late payment fees. Every credit card issued has a credit limit associated with it. Example: Based on your balance on the late fee posting date- $15 if$ 100 or less; $29 if between$ 1001 and$ 250; $39 if over$ 25 Over- the- credit- limit fee. If you draw more than your credit limit from your credit card over the limit credit fee is charged. When you take out cash advance with your credit card a cash advance fee is charged.

Example: Based on your balance as of the day the fee is assessed- $15 if$ 500 or less; $29 if between$ 5001 and$ 1000; $39 if over$ 100 Cash Advance fee. This is generally a percentage of the amount taken as cash advance. Example: 3% min$ 100. The credit card company can also fix a minimum amount of sum that will be charged with every cash advance. Balance Transfer Fee. This fees is generally a percentage of the amount for which balance transfer is desired. When a credit card holder transfers his balances from one credit card to another this balance transfer fees is charged by the credit card company.

The credit card companies can fix a certain amount as the minimum fees for balance transfer. Example 3% (min$ 10)