List of 9 Credit Card Fees & Charges Holders Usually Pay For
CREDIT CARD FEES – Here is a list of the nine(9) charges that are usually implemented in using bank credit cards.
Undeniably, one of the things that people can turn to most especially when financial emergency happens is a credit card. There are a lot of banks in the Philippines now that are offering it including the Bank of the Philippine Islands (BPI), the BDO Unibank, and even the Land Bank of the Philippines.
Contrary to what a lot of people are believing to, it is easy to get a credit card application approval as long as the bank sees that you have the capacity to be a holder. It is also not true that these cards can leave you in debts – as long as you know how and when to use it, you’re good.
But, in using bank credit cards, there are credit card fees and charges that you should be aware of. It is important that you are prepared for them as there is a possibility to avoid them.
Based on an article in The Balance, here is a list of the nine(9) credit card fees and charges that banks usually implement:
1. Annual Fee – It is a yearly charge to cardholders for the convenience brought by the credit cards to them. There are some cards with no annual fees.
2. Balance Transfer Fee – The bank may also charge for balance transfer fee when you decided to move a balance from one credit card to another.
3. Cash Advance Fee – There is also a charge in case you decide to make a cash advance. Based on the article, it is usually 5% of the amount you wanted to withdraw.
4. Expedited Payment Fee – One of the credit card fees that you can avoid is the expedited payment fee. It is the amount that you need to pay in making a last-minute payment of a credit card bill.
5. Finance Charge – Based on the article, this fee is the monthly interest charged to your account for the convenience brought to you by the card. It is like a service fee.
6. Foreign Transaction Fee – There are banks that implement foreign transaction fee in credit cards. You will have to pay in case you used the card to make payments abroad.
7. Over-the-Limit Fee – Most credit cards got credit limits and you will have to pay in case you will go beyond it. This is also one of the credit card fees that you can avoid.
8. Late Fee – A bank may implement a fee for late payments of the balance or due. Almost all credit cards have this type of fee.
9. Returned Check/Payment Fee – Based on the article, this is fee is charged in case there is no enough money in your account for a certain payment.