Which of the Following Is Not a Common Credit Card Fee?

If you’re like most people, you probably have a few credit cards in your wallet. And if you’re like most people, you probably don’t know all of the fees associated with your credit cards. In this blog post, we’ll discuss one of the less common credit card fees – the annual fee.

Checkout this video:

Credit Card Fees

There are a variety of fees that can be associated with credit cards, and it’s important to be aware of them before you sign up for a card. Some common fees include annual fees, late payment fees, balance transfer fees, and foreign transaction fees.

Annual Fees

An annual fee is a common type of credit card fee that is charged once per year. Annual fees are typically assessed on Rewards cards and sometimes on cards that offer 0% APR promotional financing terms. The fee is generally $25-$100, depending on the card issuer and the type of card. Some Annual Fees are waived for the first year.

Balance Transfer Fees

Most balance transfer cards have a 3% to 5% fee for each transfer. For example, if you transfer $5,000 from one card to another, you may be charged a $150 balance transfer fee ($5,000 x 3%). Some cards may waive this fee if you meet certain conditions (like transferring your balance within 60 days of opening your account), so it’s always worth asking about.

Cash Advance Fees

You may not think twice about using your credit card to withdraw cash from an ATM, but did you know that most credit card companies charge a fee for this service? This fee is generally around 3-5% of the total amount of the cash advance, so it can add up quickly. In addition, interest will accrue on the cash advance from the moment you withdraw it, so you’ll want to be sure to pay it back as soon as possible.

Foreign Transaction Fees

Foreign transaction fees are one of the most common credit card fees. Most credit cards will charge a foreign transaction fee of 3% of the total transaction. This fee is charged for any purchase made in a currency other than US dollars.

Which of the Following Is Not a Common Credit Card Fee?

Late Payment Fees

Late payment fees are not common credit card fees. Other common credit card fees include annual fees, balance transfer fees, cash advance fees, and foreign transaction fees.

Over-the-Limit Fees

Over-the-Limit Fees: You’ll be charged if you exceed your credit limit in a day.

Returned Payment Fees

If you miss a credit card payment or your payment is returned, you may be charged a fee. Returned payment fees are not common, but they can vary significantly from one issuer to another. Be sure to check your cardholder agreement for details on your issuer’s fee schedule.

How to Avoid Credit Card Fees

Read the Cardholder Agreement

The best way to avoid credit card fees is to read the Cardholder Agreement. The Agreement will outline all of the fees associated with the card, as well as any conditions that would result in a fee being charged. It’s important to note that fees can change over time, so it’s a good idea to review the Agreement periodically.

Some of the most common credit card fees include annual fees, late payment fees, balance transfer fees, and cash advance fees. Many cards also charge foreign transaction fees for purchases made outside of the United States. If you’re unsure about a fee, contact your card issuer for more information.

Use Direct Deposit

If you have a credit card, there’s a good chance you’re paying fees. In fact, the average credit card holder pays $149 in fees every year, according to a study by CreditCards.com. And if you carry a balance, those fees can add up quickly.

Fees are generally divided into two categories: annual fees and transaction fees. Annual fees are charged once per year, while transaction fees are charged per purchase, balance transfer or cash advance.

Here are some of the most common credit card fees:

• Annual fee: This is a fee charged once per year for the privilege of using the credit card. Annual fees can range from $0 to hundreds of dollars, depending on the type of card.

• Balance transfer fee: This is a fee charged when you transfer your balance from one credit card to another. Balance transfer fees typically range from 3% to 5% of the amount being transferred.

• Cash advance fee: This is a fee charged when you use your credit card to get cash from an ATM or bank teller. Cash advance fees are typically around 3% of the amount withdrawn, with a minimum charge of $5 or $10.

• Foreign transaction fee: This is a fee charged on purchases made outside of the United States. Foreign transaction fees are typically around 3% of the purchase price.

To avoid paying these fees, consider using a debit card instead of a credit card for purchases. Debit cards don’t have annual or foreign transaction fees, and most don’t have balance transfer or cash advance fees either.

Pay Your Balance in Full Each Month

One way to avoid credit card fees is to pay your balance in full each month. This means you will never be charged interest on your purchases, and you will also avoid late payment fees. If you are unable to pay your balance in full, try to at least pay the minimum amount due to avoid being charged a late fee. You may also want to consider a credit card with a grace period, which allows you to avoid paying interest as long as you pay off your entire balance within a certain time frame.

Conclusion

If you’re looking for a credit card with no hidden fees, you’ll want to avoid cards that charge an annual fee, a balance transfer fee, a foreign transaction fee, or a cash advance fee. Some cards also come with additional fees, such as a late payment fee or a returned payment fee. To avoid these fees, you’ll need to be diligent about making your payments on time and reading the fine print before signing up for a new credit card.

Similar Posts