Credit Card Fees Explained
Common Credit Card Fees:
- Annual fees
- Interest charges
- Late payment fees
- Foreign transaction fees
- Cash advance fees
Annual Fees
Typical Annual Fee Ranges
- Basic Cards: $0 - $30
- Rewards Cards: $65 - $150
- Platinum Cards: $145 - $250
- Premium Cards: $250+
Note: Higher annual fees often come with better rewards and benefits
Interest Charges
Purchase Interest
- Low rate: 12.95% - 13.95%
- Standard: 19.95% - 20.95%
- Calculated daily
- Charged monthly
Cash Advance
- Higher rates: 22.95% - 24.95%
- No interest-free period
- Additional fees apply
- Immediate interest
Transaction Fees
Foreign Transaction Fees
- Typically 1.85% - 2.95% of transaction
- Applies to overseas purchases
- Online foreign currency purchases
- Some premium cards waive fees
Cash Advance Fees
- $2 - $5 per transaction
- Or 2% - 3% of amount
- Higher of flat fee or percentage
- ATM owner fees may apply
Penalty Fees
Common Penalty Charges
- Late Payment Fee: $10 - $25
- Over Limit Fee: $10 - $20
- Returned Payment Fee: $10 - $25
- Card Replacement Fee: $10 - $15
How to Avoid Fees
Fee Prevention Tips
- Annual Fee
- Choose no-annual-fee cards
- Request fee waiver
- Meet spend requirements
- Interest Charges
- Pay full balance monthly
- Use interest-free days
- Avoid cash advances
- Penalty Fees
- Set up automatic payments
- Stay under credit limit
- Monitor account regularly
Understanding Interest-Free Periods
How It Works
Most cards offer 44-55 days interest-free on purchases if you pay your balance in full each month.
Important Conditions
- Must pay previous month's balance in full
- Starts from statement date
- Doesn't apply to cash advances
- Lost if carrying balance
Fee Comparison by Card Type
| Card Type | Annual Fee | Interest Rate | Foreign Fee |
|---|---|---|---|
| Low Rate | $0-30 | 12.95%-13.95% | 2.5% |
| Rewards | $65-150 | 19.95%-20.95% | 2.5% |
| Premium | $250+ | 19.95%-20.95% | 0%-2.5% |
Common Questions
Can annual fees be waived?
Some banks waive first-year fees or offer ongoing waivers with minimum spend requirements.
How are interest charges calculated?
Interest is calculated daily on the outstanding balance and charged monthly to your account.
What fees can be negotiated?
Annual fees, late payment fees, and foreign transaction fees may be negotiable with your bank.
Money-Saving Tips
- Compare card fees before applying
- Set up automatic payments
- Use cards matching spending habits
- Review statements for hidden fees
- Ask about fee waivers