West Palm Beach Bankruptcy Attorney

Understanding Credit Card Fees

When it comes to credit cards, your balance can add up fast – and not just from your purchases. Many consumers know to look out for high interest rates and promotional teaser rates, but less well-known are the many types of fees charged by credit card companies in order to maximize their profits. Annual fees, over-the-limit fees and late fees are costly and are becoming more prevalent all the time.

Annual Fees

Annual fees are perhaps the most well-known type of credit card fee. In order to get access to a line of credit, cards with annual fees require customers to pay for the privilege. Such fees are often as a high as $100 or more. An annual fee is often charged whether you use the card or not. Since consumers have become more aware of annual fees, some credit card companies have shifted their focus to other fees which aren’t as obvious.

Balance Transfer Fees

This type of fee is charged when a consumer opts to transfer a balance from an existing card to a new one. Companies generally charge a percentage of the total balance being transferred. In the past, balance transfer fees were often capped – that is, they could not exceed a maximum amount of $75, for example. However, many credit card companies have now removed such caps, resulting in a higher fee for you and increased profit for them.

Over-the-Limit Fees

With over-the-limit fees, individuals are charged for exceeding a pre-set credit limit determined by the card company. If a purchase puts the individual over their limit, they are charged a fee that is often $39 or higher. As a result, you can rack up multiple over-the-limit fees in a single month if you make several purchases while over your limit.

Late Fees

This fee is charged if the credit card company does not receive payment from the consumer by a pre-determined due date. According to industry analysts, late fees make up about 70% of total penalty fees paid to credit card companies. These fees are often $35 or higher, in addition to the added expense of a higher interest rate that is often imposed following a late payment.

Contact us

If your credit card use has gotten out of hand, it is important that you understand your legal options. Contact the West Palm Beach bankruptcy attorney of Eric N. Klein & Associates, P.A. by dialing 561-353-2800.