5 Hidden Credit Card Fees and How to Avoid Them

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Many credit cards come with extra fees you may not even know about. Even if you don’t know they’re there, some can cost you more in the long run.

Not all fees are easy to find or out in the open. However, they should be on a credit card company’s website or in the fine print of your contract. Whether you need help with credit card debt and are looking for a way to avoid fees, understanding them is half the battle. Here are some to look for.


Annual Fee

Your card may or may not have an annual fee. Usually, cards with annual fees offer high-end rewards. This might include travel cards and business cards. Cards for people with limited or fair credit or credit cards for bad credit often have annual fees. The better the rewards, the more risk the card issuer has, thus the more likely there is an annual fee.

 Interest Charges

 What is a good APR for a credit card? The lowest one you can get is typically the answer to this question. Credit card interest rates are typically represented as an annual percentage rate, or APR for short. Most cards have a variable APR, meaning it can change based on other factors. You are charged an interest charge if you do not pay your monthly statement in full. The actual APR is calculated annually but is billed each month if your balance is not fully paid.

Late Payment Fee

Did you forget to make a monthly minimum payment? You will likely face a late fee. They are added to your bill if you don’t pay past a certain time limit after it is due. If you are lucky, your card may not even have a late payment fee. However, even if you don’t have a late payment fee, missing payments can negatively impact your credit history, so make sure you always make at least the minimum payment on time.

Cash Advance Charge

Although cash advances or withdrawals are more associated with debit cards, some credit card issuers may offer a cash advance option. You will likely pay a cash advance fee. What you will pay is determined in your credit card agreement. You will need to be careful, however, as you aren’t just paying the cash advance fee. You may also end up paying a high APR along with the fee when you withdraw the cash.

Over-Limit Charge

You might be charged an over-limit fee if you go over your credit card limit. It’s added to your balance in the same month it was issued. Not every card has an over-limit fee, so check to see if your card has one. Cards may also stipulate that if you exceed your limit, your APR might increase, which is why it’s a good idea to avoid this charge as much as possible.

About Tally

 There’s more to life than worrying about your high credit card balances. Tally can help with credit card debt and get to the credit card payoff finish line. If eligible, Tally will extend a line of credit you then use to pay off your credit card balances. After that, you only need to make one easy monthly payment to Tally, and you’ll be well on your way to achieving credit card debt payoff. The app offers other resources, as well, such as a credit card interest calculator, so you can understand the true cost of your credit card debt. Getting started is easy, and you can check your eligibility in minutes. Take the first step to paying off your credit card debt with Tally today.

 See how Tally can help with credit card debt at https://www.meettally.com/

 Disclosures: Lines of credit issued by Cross River Bank, Member FDIC, or by Tally Technologies, Inc. (“Tally”), NMLS #1492782 (http://nmlsconsumeraccess.org); see your line of credit agreement. Lines of credit not available in all states.

†To get the benefits of a Tally line of credit, you must qualify for and accept a Tally line of credit. Based on your credit history, the APR (which is the same as your interest rate) will be between 7.90% - 29.99% per year. The APR will vary with the market based on the Prime Rate. Annual fees range from $0 - $300.

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