What You Need To Know About Common Fees for Credit Card Holders
Your Credit Card Isn't Fee Free
No matter what type of credit card a consumer has, whether it be a Visa, MasterCard, or Discover, credit card fees remain a source of confusion for many consumers. Over the years, credit card fees have really increased, and this holds true whether you have a Visa card or another type of credit card. If you want to make sure you aren't surprised by unexpected credit card fees, you'd better be aware of just how hard they can hit you.
Credit Card Fees 101
Consumers might know how to use their credit cards to buy all their favorite items, but many know very little about credit card fees. Whether you have a Visa or another credit card, you will definitely have fees associated with each credit card you have.
Overlimit fees are the first type of credit card fees you need to understand and they are also often the most misunderstood of credit card fees. How exactly does one incur an overlimit fee?
If you think your credit card company will automatically decline any charge that would put you over your credit limit, you're sorely mistaken. If you have just $100 left on your credit limit, and you make a purchase for $102, your credit card company will let the charge go through, but they'll tack on a hefty overlimit fee for doing so.
Overlimit fees are pretty high, sometimes as much $35 if you exceed your credit limit even by just $1. Being over the credit limit is quickly compounded by the fact that overlimit fees will be added to the already high balance. This is true for Visa, MasterCard, Discover, and really most any credit card.
Another common fee many credit card holders run into is the late payment fee. These credit card fees can be charged even if you're just one day late with your payment, which means you'd better know when your due date is and have that payment in at least a few days before it is actually due. If your payment is due on Friday and you mail your payment Monday, it might not get there in time.
To avoid these credit card fees, mail your payment in the week prior or make your payment online. That is really the only way to avoid fees for late payments.