Before you comb through your inbox searching for that provocative new credit card that you deem a must have, read the fine print, because some cards come with a whopping 12 fees each.
A survey by Austin-based CreditCards.com examined 100 credit cards in June that represent a sampling of cards offered from major issuers. Two credit cards, the First Premier Bank Credit Card and First Premier Bank Secured MasterCard, both charged 12 fees each. Five major credit cards -- other high-penalty offenders -- charged nine fees each: the Credit One Visa Platinum, Fifth Third Bank Platinum MasterCard, Navy Federal Credit Union Platinum, Navy Federal Credit Union Cash Rewards and Regions Visa Platinum Rewards. The average credit card charges six different fees.
“There are two main categories of fees: penalty fees and transactional fees,” said Matt Schulz, CreditCards.com’s senior industry analyst. “Penalty fees are pretty easy to avoid by paying your bills on time. Transactional fees are more important.”
By contrast, the PenFed Promise Visa Card does not charge fees at all. Other cards with a low number of fees still instituted three of them and included the following cards: ExxonMobil SmartCard from Citi, Spark Classic from Capital One, Capital One Spark Cash Select for Business and Spark Miles Select by Capital One.
The survey found some favorable news, including the fact that annual fees are rare and only 25 of the 100 cards charge an annual fee with ten of those who waive the fee for the first year.
Late payment fees remain the most common fee, as 99 of the cards penalize consumers for not making payments on time. These fees can cost consumers as much as $35 for just one late payment.
It Pays to Shop Around to Avoid Pervasive Fees...