1 Answers
SeaKnight
Updated:31/05/2024
When applying for low-fee business credit cards, understanding potential hidden fees is crucial for making an informed decision.
Common Hidden Fees
- Annual Fees: Even with low-fee cards, some may charge an annual fee.
- Foreign Transaction Fees: Fees applied for purchases made outside your home country.
- Cash Advance Fees: Charges incurred when withdrawing cash using your card.
- Late Payment Fees: Penalties for not making payments on time.
- Over-Limit Fees: Fees for exceeding your credit limit.
Frequently Asked Questions (FAQ)
Q1: Are there annual fees for low-fee business credit cards?
A1: Some low-fee cards may still carry annual fees, although they are typically lower than traditional business credit cards. It’s essential to read the terms carefully.
Q2: What are the foreign transaction fees?
A2: Foreign transaction fees generally range from 1% to 3% of the transaction amount for purchases made outside the U.S.
Q3: How can I avoid cash advance fees?
A3: Avoid withdrawing cash using your credit card; consider using other payment methods when possible.
Statistical Table of Common Hidden Fees
| Type of Fee | Average Amount | Frequency |
|---|---|---|
| Annual Fee | $50 – $95 | Annual |
| Cash Advance Fee | 3% – 5% of the amount | Per Transaction |
| Foreign Transaction Fee | 1% – 3% | Per Transaction |
| Late Payment Fee | Up to $40 | Per Incident |
| Over-Limit Fee | Up to $35 | Per Incident |
Mind Map of Hidden Fees
- Low-Fee Business Credit Cards
- Annual Fees
- Foreign Transaction Fees
- Cash Advance Fees
- Late Payment Fees
- Over-Limit Fees
Final Tips
- Always read the terms and conditions thoroughly before applying.
- Contact the card issuer directly to clarify any potential hidden fees.
- Consider comparing multiple cards to find the best option that suits your business needs.
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