September 21, 2017

Common Credit Card Fees and Charges

Many Australians use credit cards as an alternative to cash when purchasing certain items and/or availing various services. Different banks in Australia offer a wide range of credit cards which vary in a lot of features. One way to know which is the right one for you is to compare credit cards. This will greatly help you find out the pros and cons of each card, enabling you to have a well-informed decision.

Comparing credit cards will help you find out the pros and cons of each card, enabling you to have a well-informed decision.

When looking for the best credit card deals, it is important to learn about the common fees and charges involved. These will depend on the type of card that you have but in general, be aware of the following credit card fees and charges:

  • Annual fee – this is the yearly fee that is usually charged upon activation of your card
  • Purchase interest rate – this is the interest rate when you make a purchase
  • Balance transfer fee – you will be charged when you transfer your balance from the credit card of another bank to your card from a different bank
  • Cash advance fee – you will pay this fee when you withdraw cash or make cash equivalent transactions from your card
  • Late payment fee – you will pay this charge if you fail to make the minimum payment on or before the due date for a certain month
  • Replacement fee – this is the charge in case you lost your credit card
  • Over the limit fee – this is the fee when you go over your card limit
  • International transaction fee – you will pay this fee if you use your card to make purchases when you’re overseas
  • Foreign currency cash advance fee – you will pay this fee when you withdraw cash from your credit card when you’re overseas
  • Foreign currency conversion fee – this is the charge when you use your card overseas or make a purchase online that comes from a different country

These are the common credit card fees and charges. Again, these vary depending on your bank and the type of credit card that you use. That is why it is essential to compare credit cards so you will know what to expect as far as fees are concerned. While you cannot completely avoid some of them, being aware of what comes with a fee will help you better manage your monthly payments.

Got other tips on how to get the best credit card deals in Australia? Share your ideas in the comments section.

About the author  ⁄ Marxa Dillan

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