Fees | Credit Card Topics

What is a Fixed APR? How Credit Card Issuers and Lenders Determine Rates

By: Eric Bank, 11/19/2024

It isn’t called a fixed APR because it was once broken, and it isn't rigged either. OK, so I’m not a standup comic. But I can tell you all you need to know about a fixed annual percentage rate (aka fixed APR) and where to go to find one. Have you ever wondered why the interest rate on your credit card seems to jump around or why some loan payments are more predictable than others? It all comes down to variable APRs. A fixed APR is an interest rate that does not change... read more »

What is a Maintenance Fee? A Closer Look at the Common Subprime Credit Card Charge

By: Jon McDonald, 9/17/2024

I spend a lot of time pondering questions with no clear answers: Am I saving enough money? Where did that second sock go? Some things we'll just never know. But when it comes to credit card maintenance fees, we can find the answer — and I did. My research on fees will answer why some cards have fees and others don't. A credit card maintenance fee refers to a monthly charge subprime credit card issuers impose for the privilege of using their cards. The maintenance fee covers the... read more »

What is a Credit Card Setup Fee? How the Charge Can Reduce Issuer Risk and Costs

By: Andrew Allen, 9/3/2024

Anyone can apply for a credit card. In fact, part of my wardrobe in college consisted of free T-shirts I got from filling out applications at concerts and sporting events. But applying is just the first hoop you have to jump through before you can use a credit card. And if the issuer approves your application and sends your card, you may have a final hoop to jump through: paying a setup fee. Some credit cards charge a setup or activation fee before you even start using the... read more »

What is a Credit Card Over-Limit Fee? A Guide to the Penalty Charge

By: Jon McDonald, 8/21/2024

Going over the limit may seem like a good option in certain situations. Maybe that car in front of you is driving a little slow and you need to speed up to pass them. Or you take an extra few bites of that dessert, even though you promised yourself you wouldn’t. We’ve all been there, or at least I have. In the credit card world, pushing the limit isn’t nearly as gratifying because it can cost you money. When credit card users spend over their card’s limit, credit card... read more »

How Credit Card Late Payment Fees Work and How to Avoid Them

By: Eric Bank, 7/17/2024

Anyone can make mistakes — just ask my editor. One common faux pas is forgetting to pay a credit card bill. The penalty — a late payment fee — is swift but not too severe. Cards charge a late fee when you fail to pay the monthly bill by the due date. You are penalized for payments missed, which means coughing up more money, making it a little harder to get out of debt. What’s worse is that your credit score can decrease, thwarting easy access to future loans and credit... read more »

What is a Foreign Transaction Fee? How They Work & How to Avoid Them

By: Eric Bank, 5/23/2024

What do a Swiss cuckoo clock, a box of Belgian chocolates, and a bottle of French champagne have in common? Many credit cards charge an extra fee when you buy these items from their native countries. A credit card foreign transaction fee is a charge you pay when you use your credit card outside your home country. This fee applies to each purchase you make in a foreign currency. The best way to avoid the cost is to get a credit card that doesn’t impose it, although many such cards... read more »

9 Best 0% APR No-Annual-Fee Credit Cards (Jan. 2025)

By: Eric Bank, 1/2/2025

Credit card companies try to understand how to appeal to every different consumer segment. And one of those segments is frugal individuals who don’t want to give card issuers any more money than necessary. If you fall into this category, you’ll enjoy reading about credit cards that never impose an annual fee and waive interest charges for a year or longer. Best yet: All these cards offer excellent rewards and benefits. Best Credit Card Offers With No Annual Fee or Interest ... read more »

5 Reasons Paying an Annual Fee Is Worth It (Or Not Worth It)

By: Marcie Geffner, 10/6/2022

Credit card annual fees tend to get a bad rap. And it’s no wonder, with charges as high as hundreds or even thousands of dollars, the annual cost for even one or two of these cards can add up quickly. Why would anyone pay an annual fee to use a card when there are so many great cards that don't charge an annual fee? Most cards that charge an annual fee come with upgraded perks and benefits that many consumers feel are worth the cost. These cards usually require consumers to... read more »

7 Credit Card Fees & How to Avoid Them (2024)

By: Erica Sandberg, 1/16/2024

Like it or not, credit cards come with a variety of fees. As an account owner, you will be directly responsible for some, but others are embedded into the product, so you’ll never even notice them. Here are 17 common credit card fees. As you’ll soon find out, a few are simply a part of doing business with a credit card issuer, but many are totally avoidable. 1. Interest When you use your credit card to make purchases, you’re borrowing money from the issuing bank. You have the... read more »

What is a Regular Purchase APR? (2024)

By: Erica Sandberg, 10/21/2024

Every credit card comes with terms, including the annual percentage rate, otherwise known as the APR. Several APRs may be attached to the card, and among them is the regular purchase APR. This rate is important because it represents how much the finance fees will be on items and services you charge to the card if not paid off each month. Here's everything you need to know about regular purchase APRs. Regular Purchase APR Versus Other APRs Credit card issuers can charge several... read more »

How Credit Card Companies Make Money

By: Andrea Woroch, 1/16/2023

Americans love credit cards — why pay now if you can pay later and earn rewards for doing so? Unfortunately, poorly managed accounts can quickly deflate your bank account and end up costing you more than you charged to the card in the first place. That’s because credit card companies charge interest on the balance you carry every month. But this isn’t the only way card companies make money. In addition to the fee you pay for borrowing their digital dollars, you may be on the... read more »

12 Credit Cards that Offer Free Checked Bags (2024)

By: Eric Bank, 1/26/2024

The indignities of airline flight know no end. Shrinking seats, long lines, nose-bleed fares, and fees galore. One fee that really chafes is the one for checking bags, which, until recent years, had always been free. I recently flew one airline on a deeply discounted fare that charged $50 per checked bag. Overstuffed luggage that exceeds the weight limit will cost you considerably more. But, thanks to the dozen credit cards that offer free checked bags reviewed here, we can stop... read more »

7 Best No-Annual-Fee Credit Cards with Rewards (Jan. 2025)

By: Adam West, 1/2/2025

Today’s credit card marketplace is brimming with options for rewards. And consumers will have no difficulty finding a credit card that doesn’t charge an annual fee. But finding a no-annual-fee credit card with rewards is an extra special treat. Many credit card issuers tack on fees or higher interest rates to offset the cost of the rewards they pay to cardholders. By leveraging a card with no fee that still pays rewards, you can earn money for spending money. Who doesn’t want... read more »

3 Ways to Avoid Interest Charges on Credit Cards (Jan. 2025)

By: Adam West, 1/2/2025

There’s an old saying, “If you dance to the music, you have to pay the piper.” Many people follow the same mindset with credit cards, thinking that interest charges are simply the fee you pay for the convenience of using plastic. But, believe it or not, there are multiple ways to avoid purchase interest charges on credit cards. Below we'll look at three ways to avoid these pesky fees so you no longer have to pay the piper, er, bank. 1. Open a Card with a 0% Promotional APR... read more »

9 Best No Foreign Transaction Fee Credit Cards (Jan. 2025)

By: Adam West, 1/2/2025

Each year, millions of Americans travel to exotic locations abroad, whether for business or an exciting vacation. But even if it’s thoroughly planned and researched, international travel can be expensive. That’s why savvy travelers do everything they can to cut costs and lower fees when venturing to foreign destinations. Among the ways to lower your travel expenses is to use a credit card that charges no foreign transaction fees when making purchases or converting to the local... read more »

12 Best No-Annual-Fee Credit Cards (Jan. 2025)

By: Eric Bank, 1/2/2025

If you’re looking for the most credit card value for your dollar, then credit cards with no annual fees are just what the doctor ordered. These cards offer plenty of the perks you get from credit cards that charge annual fees but without that yearly hit to your bank account. These perks include airline miles, cash back, and introductory 0% APRs, even if your credit score is less than perfect. Another benefit of no-annual-fee credit cards is that it’s easy to keep using them over... read more »

7 Options When Your Credit Card APR Rises (Jan. 2025)

By: Marcie Geffner, 1/2/2025

There's no doubt about it: Credit card interest rates are going up, and these rate hikes can hurt consumers who don't pay off their card balances every month. Rates are rising because the Federal Reserve hiked its benchmark federal funds rate earlier this year. Consumers don't pay this rate directly, but when it goes up, market rates — the rates consumers do pay — also tend to move higher. In the article below, we'll dive into important things to know -- and actions to take --... read more »

15 Cheap Credit Cards: Low Interest & $0 Fees (Jan. 2025)

By: Brittney Mayer, 1/2/2025

Let's talk about cheap credit cards — that is — cards with low interest rates and no fees. When you think about it, fees are a lot like the ninjas of the credit card world. They're excellent at hiding, they can sneak up on you when you least expect it — and they can cost you a limb if you're not careful. But while ninjas are notoriously difficult to best, most credit card fees can be defeated simply by choosing the right card (and using it wisely). The key to minimizing the... read more »

8 Best No Annual Fee Credit Cards (Jan. 2025)

By: Brittney Mayer, 1/2/2025

No annual fee credit cards are among the most appealing to many consumers these days. Having to pay an annual fee can be a disincentive for applying for an otherwise appealing card. Below, we've compiled a list containing our picks for some of the best no annual fee credit cards out there today. Looking at the cardholder agreements that come with new credit cards can be a bit intimidating, full as they are with descriptions of the copious fees for using the cards' features. On the plus... read more »

14 Best No-Fee Credit Cards (2020)

By: Amber Brooks, 9/16/2020

No-fee credit cards offer a small reprieve from the fees we are hit with on a near-daily basis. In the article below, we'll take a look at some of the best no-fee cards available today, including options for a range of credit scores. For me, one of the most frustrating things about moving to a new apartment (besides hauling my couches around while my brothers complain) is all the fees that get tacked on. "There's a cleaning fee," my old apartment complex tells me, so I pay that.... read more »

How Credit Card Companies Calculate Your Minimum Payments

By: Eric Bank, 6/26/2015

One of the first things you should consider when exploring new credit cards are their methods for calculating minimum payments because there are multiple techniques the credit card companies use. The minimum payment is the amount you must fork over each month based upon your unpaid balance, interest and fees. The Credit CARD Act of 2009 created new rules regarding how issuers must report information about minimum payments. Percentage Methods Typically, credit card companies... read more »

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All articles tagged Fees (21)