Credit Card Fees

Most people focus on the interest rate, or APR, they will be getting when they look for a new credit card. While this is a vital part of the costs associated with a card, you should also take into account other fees that you may incur with the use of the card when working out which card is right for you.

Annual Fee

Many credit cards these days have no annual fee. However, a wide number still do charge a yearly fee for the use of the card. This can be particularly the case with rewards cards and airline miles cards. Make sure you're aware of this fee before you apply for the card so it won't be a nasty shock when you get your statement.

It can be a good idea to weigh up whether paying a fee for a card is worth it for what you get in return. For example, if you are looking at a rewards card with an annual fee, those who are likely to use the card a lot may find paying the annual fee is worth it for the rewards you get in return. However, for those that don't spend much on their cards each month, you may be better off with a card with no annual fee, even if it doesn't offer any rewards or cash back.

Late Payment Fee

If you're the kind of person that often forgets to pay the bills, it might be a good idea to look at the late payment charges on the card you are considering. If this kind of charge is likely to crop up for you then it can be a good idea ahead of time to know what you're getting into. You might also be able to find a card with much lower fees than others which can make a big difference in the long run.

Cash Advance Fees

Whilst many people only use their credit cards to make standard purchases a number of people also use their cards to get cash from ATMs. This is considered a cash advance or cash transaction by card issuers and often involves an additional fee. These fees can also apply when using credit card checks that often get sent to you in the mail. If you think you're likely to make use of these services, check out the terms and conditions of the card your considering so that any fees that show up on your statement won't be a big surprise.

You should also note that cash advances often incur a much higher interest rate than when you just use your card to make purchases in stores.