Some Commonly Used Credit Card Penalties
What Are Normal Fees Of Credit Cards
At one time or another the average long term user of a credit card will be charged some of the fees commonly used by credit card companies.One of the fees charged on a credit card is the set-up fee and an annual fee also is assessed as well as a fee to raise the limit of the line of credit.There are fees which are charged when the credit card is used in an irresponsible manner such as when the payments are late or the credit line exceeded.
It may help you to have an idea of how the common fees used by the credit card companies work and why the fees are appearing on your monthly statement.
A one-time setup fee is assessed to establish a new credit line and to help pay costs associated with opening the new credit card account. A fee that may be charged once a year or every three months or perhaps on a monthly basis, the annual fee is charged to keep the credit line accessible to the customer during the year.The decision of how often this fee will be assessed depends on the policies of the credit card company or maybe the terms of the credit card.
A credit card feature that can be used to obtain cash quickly is the cash advance feature in which a cash advance fee will be charged as a flat rate, or as a percentage amount of the cash received in the cash advance transaction.A transaction fee will also be charged by the ATM or the banking facility you use to obtain the cash advance.
A balance transfer fee is charged to transfer the balance of one credit card to the balance of another card; the balance transfers are processed as the individual card policies govern.The transfer of the balance on a high interest rated credit card to the balance on a low interest rated card is the usual reason for such a practice.
Credit card users are charged a late fee as a type of penalty for their late payments.The amount of the fee for being late with payments will be determined by the credit card provider and the type of card you use but you should find out what the exact fee is for making late payments before using your card.
If a credit line is increased because the customer requests it there is a fee assessed for this credit card service.An over the limit balance fee is charged in the event that the cardholder makes purchases exceeding the preset limits on the credit line of the card.The fee assessed can be varied according to the credit card terms or if there are any safeguards in place to make sure the cardholder is not charging too many purchases.
A returned check from the credit card company must be compensated for by a penalty fee being charged to the credit card customer because of insufficient funds.An additional fee is charged by the bank, so you can be charged two substantial fees for bouncing the same check.
About the Author
Alisdair Cosgrove has been writing finance articles for many years and can find more of his work at the UK site CreditCardsWeb.co.uk, offering credit cards for UK residents and also a great selection of 0% credit cards. Visit today to read more of Alisdair's great credit card articles including best rewards credit card use
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