Two Credit Card Fees To Watch Out For (And One That’s Worth Paying)

Sunday, April 24th, 2016
Updated: April 24th, 2016
The content is accurate at the time of publication and is subject to change.

Generally, we can accept that paying fees is something most people don’t want to do. Bank fees, penalty fees, usage fees, processing fees—there are too many fees that crop up from day to day. So avoiding them whenever possible is a good thing to do. That goes for credit cards, too.

However, there are actually some fees that are worth paying. We’ll get to that later. First, let’s cover the two credit card fees that you never want to pay. These are the ones to watch out for. So here they are, and here’s how to avoid paying them.

Late payment fees are the number one fee to watch out for. First of all, they tend to be steep—it’ll cost you an average of $35 for letting that payment due date slip your mind. And second, they are totally, completely avoidable. That’s right—there’s no reason you should ever be paying this fee. Here’s why: you can easily set up payment reminders so you never forget to make that credit card payment. These can be texts, emails, or both. Set them to send a week before your due date, so you have time to get that payment in, even if you’re snail-mailing it.

If you want to be even surer that your payment isn’t late, go ahead and set up an automatic payment to post each month. That way, your amount due will automatically come out of your checking account, or whichever account you link, and you won’t have to worry at all. You can designate that just the minimum amount due is paid each month, or have the entire amount due transferred on the due date to avoid interest. It’s up to you.

One more thing about late payment fees—these days, it’s easy to find a card that doesn’t even charge them. Shop around for a no-fee credit card, and you won’t pay this fee if you forget the date.

The second fee to watch for is the over limit charge. This happens when you charge more than your credit limit. Instead of declining the transaction, your card issuer may approve the charge—and then slap you with a fee. Ouch. Also generally around $35 per hit, this fee can be avoided simply by setting up alerts to tell you when you’re close to your credit limit. When you get the alert, put your card away until you pay it down. It’s as simple as that.

Now, what’s that fee worth paying? It’s an annual fee. Yes, that’s one that many people think they want to avoid. But have you looked at what you get from that credit card that charges an annual fee? Usually it comes with great perks, like signup bonuses, thank you points that can be exchanged for gift cards or frequent flyer miles, purchase protection, concierge service, insurance, access to luxury airport lounges, and more. Next time you’re looking for a new credit card, don’t click away from one that charges an annual fee. Chances are, it’s worth it.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

Latest Credit Card Fees Guides

What Fees Your Credit Card Conceals May 28th, 2020

Credit cards may be fraught with a dozen of different fees. Certainly, you may know what annual fee is, but if you are not used to thoroughly read card agreements, you probably have never paid attention to some other kinds of fees. Still, it is very important to be well-informed about all the fees that […]

Continue »
Guide to Credit Card Minimum Payments March 9th, 2020

After you make purchases with your credit card, there always comes a time when you have to foot the bill. A monthly credit card statement usually contains a lot of numbers that taken together make up your payments. Of course, you’d better understand and monitor them all, but there is one number that just calls for attention – the minimum credit card payment.

Continue »
What Is an Annual Fee and How to Avoid It? February 12th, 2020

The annual fee is a fee that you pay once a year just for using a credit card. Not all credit cards have an annual fee. As a rule, this fee is charged on travel credit cards, premium credit cards, and credit cards for bad or limited credit history.

Continue »
Can You Avoid a Credit Card Late Payment Fee? January 15th, 2020

A late payment fee is a fee charged by the credit issuer when cardholders fail to pay on time. It applies to both situations: when you didn’t manage to pay before the due date at all and when you did pay but less than the required minimum.

Continue »
How To Build Credit Without Paying Unnecessary Fees October 30th, 2018

If you’re starting from scratch with your credit history, either trying to build credit from nothing or attempting to rehabilitate bad credit after something like a job loss, divorce, or other unexpected life event, you may wonder what the best way is to achieve an excellent credit score without paying high fees.

Continue »
Best Credit Offer
Best Credit Cards from Credit-Land.com
Check off the cards you want to compare. Then click the Compare link to go to the comparison table.
Consumer Rating: 5 / 5
Badcredit.com Badcredit.com
Copyright © 2001-2020 BestCreditOffers.com All Rights Reserved.

*See the credit card's terms and conditions on the online application page. Note that this website may be compensated by credit card issuers when the visitor applies for a card through the links on this website. We do our best to maintain all information accurate and up to date. However, we do not warrant the credit card information won't change. Click the "Apply Online" button and review the current info on the secure credit card terms page.

Information in these articles is brought to you by BestCreditOffers.com. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.

The BestCreditOffers.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. BestCreditOffers.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the BestCreditOffers.com website are property of their respective owners.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer. Opinions expressed here are the author's alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank for terms & conditions.

BestCreditOffers.com makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that BestCreditOffers.com may be compensated by the credit card issuers when the readers apply for a credit card through this site.

BestCreditOffers.com is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. BestCreditOffers.com does not review or list all available financial or credit offers.

Disclosure: Not an access card.

You've successfully subscribed!

Please specify the following:All these fields are optional

Thank you for providing this information! We will make sure our letters are useful for You.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.