Credit Card Fees: Watch for These

It doesn’t matter if you’re searching for a new credit card or learning more about the one you already have, there’s an important question to answer: are you familiar with the fees associated with the card?

Unless you can answer “yes” with 100 percent confidence, you have some work to do. If you’re uncertain of potential credit card fees, one or more of these could sneak up on you in the near future.

An annual fee is a common credit card fee that’s paid once per year. You don’t get anything in return for paying the fee. The only benefit is the ability to use the card for a period of one year.

Here are some additional credit card fees to familiarize yourself with:

•    Balance transfer fee: If you opt for a balance transfer credit card, you’ll pay a fee on the total amount transferred. This is typically in the three to five percent range.
•    Late fee: You do your best to pay your bill on time every month, but life can get in the way. If you pay late, you want to know what it’ll mean in regards to a late fee.
•    Cash advance fee: You can secure cash with your credit card, but it’ll cost you. Cash advance fees are typically in the two to four percent range.
•    Foreign transaction fee: Do you plan on traveling out of the United States? If so, foreign transaction fees can come into play. Expect two to three percent of your total purchase, which can really add up if you continually use your credit card in a foreign country.
•    Inactivity fee: It’s not as common as the others on this list, but some credit cards charge you a fee if you don’t use it for a predetermined period of time.

If you spot any of these fees on your credit card statement, contact your issuer to learn more. Not only should you ask for clarification, but you can also request that they remove the fee. This doesn’t always work, but if you’re a good customer your issuer may help you out.

What steps do you take to prevent these credit card fees?