1 Answers
RiverMystic
Updated:26/08/2024
When selecting a credit card, being aware of hidden fees can save you money and headaches.
Common Hidden Fees
- Annual Fees: Charges you pay yearly to maintain your credit card.
- Foreign Transaction Fees: Fees for purchases made in a foreign currency or through foreign banks.
- Balance Transfer Fees: Costs charged when transferring an existing balance from another credit card.
- Cash Advance Fees: Fees incurred when using your credit card to withdraw cash.
- Late Payment Fees: Charges for missed or late payments.
- Over-limit Fees: Costs incurred when you exceed your credit limit.
- Return Payment Fees: Fees when a payment is returned due to insufficient funds.
Statistics on Hidden Fees
| Fee Type | Average Cost |
|---|---|
| Annual Fee | $95 |
| Foreign Transaction Fee | 3% of transaction |
| Balance Transfer Fee | $5 or 3% of transferred amount, whichever is greater |
| Cash Advance Fee | $10 or 5% of withdrawn amount, whichever is greater |
| Late Payment Fee | Up to $40 |
| Over-limit Fee | Up to $35 |
| Return Payment Fee | Up to $35 |
Mind Map of Hidden Fees
Hidden Fees
- Annual Fees
- Transaction Fees
- Foreign
- Balance Transfers
- Cash Advances
- Payment Fees
- Late Payments
- Over-limit
- Return Payments
Tips for Avoiding Hidden Fees
- Read the Fine Print: Always review the terms and conditions before applying.
- Compare Cards: Look at various options to find the best deal.
- Use Card Responsibly: Keep track of your spending to avoid over-limit and late fees.
- Ask Questions: Contact customer service for clarification on fees before applying.
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