The Basics of Credit Cards (cont.)
Contributed by Amanda Wood
Other Fees Applied to Credit cards
Not only do you have to worry about the interest rate applied to your credit card, but there are other fees to take into consideration. Most credit card companies have a late fee. So, if you go to make your monthly payment, and let's say your a day late doing so, they will turn around a charge you a fee for making a late payment. Some credit card companies also have over-the-limit fees.
If you only have a $500 credit card, and you spend more then $500, your credit card company will charge you an over-the-limit fee. These over-the-limit fees do vary from company to company. Some may just charge you a set fee for going over, while others may charge you a percentage of the amount that you have gone over. Or some companies may even charge you a set amount per another set amount, up to the amount that you have gone over. For example, say you go over $25.
Your company charges you $5 per every $5 that you have gone over. You would then have a $25 fee added to your credit cards balance. So, with you going over $25, your credit card balance would now be at $550. Then you also have to pay back all the interest.
