Avoidable Credit Card Fees and Charges

In addition to interest, there are avoidable credit card fees and charges that can add to your total cost of borrowing. Here are some to look out for—and to avoid.

• Annual fee: The cost you pay each year to use a card. Annual fees are usually charged on cards that offer special perks and extras, like cash back or miles. The cost of the fees often outweighs the benefits.
• Late payment fee: The amount you pay if you don’t pay the minimum balance on time.
• Over limit fee: The amount you pay if you charge more than your credit limit.
• Cash advance fee: The amount you pay for using your card to borrow cash using an ATM. Interest is charged from the moment you get the cash—and it’s charged at a higher APR.

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