Credit Card Fees and Charges

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How Credit Cards Work: Fees and Charges

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The convenience of credit cards comes at a price. In addition to paying interest on any outstanding balance, you may also be charged the following:

  • Annual card fees 每 these may be waived if your annual card spending exceeds a set amount. On cards with a low credit limit, a high annual fee can really boost the overall cost. For example, on a credit card with a limit of $1,000, an annual fee of $30 is the equivalent of an extra 3% in interest. Shop around for cards charging no 每 or a low, annual fee.
  • Reward program fees 每 make sure you will get value for money from any reward program you pay to join.
  • Late payments fees 每 if your payments are made after the due date.
  • Cash advance fees 每 cash advances involve a one-off fee, but they also accrue interest in a different way to purchases. Click on &Cash advances* for more.
  • Other fees 每 other charges may apply, for example, if you exceed your card*s credit limit.
  • Some merchants may impose a surcharge for accepting payment with a credit card. The merchant should let you know, but always check before making a purchase, especially on larger-ticket items.
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