Hidden Credit Card Fees: What Credit Card Companies Don't Advertise

Hidden Credit Card Fees: What Card Companies Do Not Advertise

Credit cards come with a complex fee structure that most consumers never fully understand, costing them hundreds of dollars per year in unnecessary charges. Foreign transaction fees of 1% to 3% apply to every purchase made outside the United States, including online purchases from foreign merchants. This means a $1,000 international purchase could cost you an extra $30 simply because of a fee that is buried in the fine print of your cardholder agreement. Many cards marketed as travel cards specifically advertise no foreign transaction fees, but cards without this feature charge them on every international transaction. Balance transfer fees typically range from 3% to 5% of the amount transferred. While promotional balance transfer offers often advertise low or zero interest rates for an introductory period, the upfront fee can make the transfer significantly more expensive than it appears at first glance. On a $10,000 balance transfer, a 5% fee adds $500 to your debt immediately before you save a single dollar in interest. Cash advance fees of 3% to 5% are charged when you use your credit card to obtain cash, and unlike regular purchases, interest on cash advances begins accruing immediately with no grace period. The APR for cash advances is also typically higher than the purchase APR. Annual fees, late payment penalties that can reach $41 per occurrence, returned payment fees, over-limit fees, and expedited card delivery fees can all add additional charges to your account throughout the year. The Credit CARD Act of 2009 requires card issuers to provide clear disclosures about fees, but many consumers still do not read the fine print carefully before applying for a new card.