These cards have a similar rewards structure, with 2x miles on every purchase. Take the Capital One Venture Rewards Credit Card ($95 annual fee) and the Capital One Venture X Rewards Credit Card ($395 annual fee), for example. Typically, the more lucrative your credit card rewards, the higher the annual fee you can expect to pay. A CFPB report found the average annual fee was $94 in 2020, though there are credit cards with annual fees well into the hundreds of dollars. Any type of card may carry an annual fee, but they’re most common among those with valuable perks and benefits such as cash back, points, and other rewards. Here are the most common credit card fees and how they work.Īn annual fee is a fee your credit card company may charge you for being a cardholder. There are, however, certain fees you can’t get around depending on the type of card you own. That translates to an average of $1,000 annually for each American household.įortunately, many of these credit card fees are avoidable. Transferring your credit card debt to take advantage of a promotion may come with a balance transfer fee.Īccording to the Consumer Financial Protection Bureau (CFPB), from 2018 to 2020, Americans paid roughly $120 billion per year in credit card interest and fees. For example, overspending can result in an over-the-limit fee. ![]() There’s more to making timely payments every month to avoid a late fee. ![]() Just pay your credit card bill every month by the due date, and all is well and good, right? When you use a credit card, you’re borrowing money from your credit card issuer to expand your purchasing power, build credit, or both. One common expense that can often fly under the radar: credit card fees. With prices on the rise, many Americans are looking to cut down on their expenses.
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