A Look at Credit Card Fees

There are a number of fees associated with credit cards, all of which can be avoided if you use your card responsibly. Here is a look at the three most common fees you will encounter.

• Late Fees – late fees are fees applied to your account when you fail to make your payment on time. Some credit card companies will allow a few days to pass before applying these fees, but most will apply them on the day after payment was due. Some banks charge a flat fee while others charge a percentage of the minimum payment due.
• Over-the-limit Fees – Over-the-limit fees are imposed if you exceed your credit limit when making purchases. These fees are generally assessed each time you exceed your limit. As with late fees, over-the-limit fees may be a flat rate or a percentage of the amount you went over your limit.
• Replacement Fees – I you lose your credit card or if it is stolen, you may be charged a fee for its replacement. This is generally a low, flat fee. Many banks, however, will replace your card for free as a courtesy and will have it to you within a couple days after it is lost or stolen.