Understanding your Credit Card Fees

Like most people, you probably glance at your monthly credit card bill and pay the minimum payment, without taking the time to really go over your statement. If you were to really review your monthly bill, you would better understand your charges and possibly even save some money. To make it as easy as possible for you, however, we’ve listed some of the usual fees or charges that might be listed on your credit card.

Finance charge
Your monthly finance charge (noted separately on the bill) is the fee you pay to make your credit card purchases. It’s based on your annual percentage rate (APR), which is usually listed on the first page of the monthly statement. That APR figure is extremely important to monitor because it can go up or down depending on current market rates. Even a few percentage points difference can mean real differences in your monthly finance charges. Let’s say your current balance on one of your credit cards is $10,000. At an APR of 8%, you would be paying $800 per year, or about $66 per month on finance charges. Now, if that rate went up to 13%, you’ll be paying $1,300 per year, or $108 per month – quite a difference. If you do notice that your rate has gone up, you can always call your credit card company and see if you can lower it. If not, you can always shop around for a lower rate.

Your finance charge might also include any cash advances (using your card at an ATM do withdraw cash), which usually has a much higher rate of interest. That APR figure should be listed on the statement as well.

Late fees
Credit card companies can charge a late fee for even one day late. Late fees usually amount up to $40 per statement. Some card companies will waive a late fee if you have a decent excuse (i.e. moved residences and didn’t receive bill), especially if you were never late on a payment. If you do pay your bill late a few times, your annual interest rate could increase.

Overseas transaction fees
If you’re overseas and use your card, you’ll be charged up to a 3% transaction fee on any purchases or ATM withdrawals. That’s still competitive with any commission fees that you might have to pay to convert your money.

Criminal Records | Criminal Record | Public Record Finder | People Search | Background Checks | Background Check Gateway | | Public Record | Lookup Anyone | People Lookup

Fx-auto is a top online Forex trading system provider, where online trading is possible 24 hours a day. www.fx-auto.com

5 out of 54 out of 53 out of 52 out of 51 out of 5  

Not yet Rated | Article Directory
Understanding your Credit Card Fees

Please Rate this Article