1. Annual Fee

Some credit cards come with an annual fee, which you’ll pay when you first receive the card and at each cardholder anniversary. This fee is most common on secured and rewards cards and can range from around $50 to over $500.

How to Avoid Annual Fees

Look for secured and rewards cards that don’t charge an annual fee. Some cards with annual fees offer better benefits and rewards rates, so weigh the cost against the benefits. You can also avoid the fee after the first year by closing your account or transferring to a card without the fee. Sometimes, calling the card issuer can result in a waived fee or extra rewards.

2. Authorized User Fee

Adding an authorized user to your credit card is usually free, but some premium rewards cards charge for authorized users because they receive cardholder benefits. A few cards for people building credit also charge this fee.

How to Avoid Authorized User Fees

Most cards don’t have an authorized user fee, so choose one of these options. Remember, you’ll still be responsible for any charges made by the authorized user.

3. Balance Transfer Fee

Balance transfer fees are often charged when you transfer a balance to your credit card. The fee is usually 3% to 5% of the amount transferred, with a $5 to $10 minimum fee per transfer.

How to Avoid Balance Transfer Fees

Avoid balance transfers or consider a debt consolidation loan. Some cards don’t charge balance transfer fees but may not offer promotional 0% APRs or have shorter promotional periods.

4. Cash Advance Fee

Using your card to withdraw cash can incur a cash advance fee, often 3% to 5% of the amount received, with a minimum $5 to $10 charge per cash advance. Cash advances also start accruing interest immediately at a higher rate.

How to Avoid Cash Advance Fees

Consider an emergency loan or paycheck advance instead of using your credit card for cash. You can also reduce your card’s cash advance limit to $0 to prevent these transactions.

5. Foreign Transaction Fee

Credit cards may charge foreign transaction fees, often 2% to 3% of the transaction amount, on purchases made outside the U.S. or in a foreign currency.

How to Avoid Foreign Transaction Fees

Use travel cards that don’t have foreign transaction fees. Alternatively, use cash when abroad, and some banks will reimburse international ATM fees.

6. Late Payment Fee

Card issuers might charge a late payment fee if you don’t make at least the minimum payment by the due date. Initial late payments can be as high as $30, with subsequent late payments up to $41.

How to Avoid Late Payment Fees

Set up automatic payments for at least the minimum amount. Some cards don’t charge a late payment fee the first time or at all. If charged, pay your bill and call the issuer to request a refund or waiver.

7. Over-the-Limit Fee

Credit card issuers can only charge over-the-limit fees if you opt in. Almost no issuers charge this fee anymore.

How to Avoid Over-the-Limit Fees

Don’t opt in for over-the-limit fees, although this means your card could be declined if a transaction exceeds your limit.

8. Returned Payment Fees

Credit card issuers may charge a fee if your payment gets returned, such as when you don’t have enough money in your account.

How to Avoid Returned Payment Fees

Check your bank account balance before making payments. Enable alerts from your card issuer to get notified before automatic payments are processed.

9. Less-Common Credit Card Fees

Most credit cards don’t charge the following fees, but you might encounter them with cards for rebuilding credit:

• Program fees: An upfront fee before you can get your card.
• Monthly fees: A monthly fee in addition to or instead of an annual fee.
• Premium card design fees: For certain card designs.
• Billing statement copy fees: For physical copies of bills.
• Telephone payment fees: For making payments by phone.
• Expedited shipping fees: For faster card delivery.

Review a card’s terms and conditions to understand applicable fees. Compare options to find a card with minimal fees, even if you have bad credit.