When applying for a credit card or using an existing card to pay for a purchase, be aware of fees and interest associated with the card. Here are few to watch for.
Annual fee: Most cards charge an annual fee, but there are cards that don’t charge an annual fee. Some are tied to your checking and/or savings account and require you to maintain a minimum balance to avoid annual fee. Look for a card with no annual fee among other things.
Cash advance fee: When you are faced with a situation, you may have to get cash from your credit card. Consider fees including one-time fee, interest rate on cash advances, and grace period for paying off cash advances.
Foreign currency converter fee: If you travel outside the country and use your credit card for purchases, additional processing charges will be added to your purchase. Some cards may not allow you to use the card in certain countries altogether.
Over-the-limit fee: This could be coupled with one-time charge and traditionally carry higher fee than any other fee. Also consider demand for immediate payment clause.
Other uncommon fees to watch includes inactivity fee and convenience check fee.