What do you need to pay for when you get a credit card?
Certainly, you're not going to pay for only the cost of your actual purchases. Credit cards may come with other fees that you need to be aware of in case they suddenly appear in your credit card statement. Forewarned is forearmed they say, so consider yourself duly warned!
Annual Fee - This is what credit card companies charge for giving you a particular credit card. Some credit cards come with special privileges. A card I know, for instance, will give you assured seating in special concerts and sports events. There's also a credit card that will give you roadside help when you need it. While credit card companies would like to call these privileges "free" - they actually cost you something - the annual fee. Learn more about annual fees.
Membership fee - As you know, credit card companies sometimes coordinate with certain merchants to come up with the so-called "co-branded" credit cards. They are co-branded because they carry the name of the credit card company and the partner merchant. If the partner merchant charges its members a fee for membership (e.g. Costco, a partner merchant of American Express, charges an annual membership fee), your card will be automatically charged a membership fee every year unless you specifically state that you don't wish your membership fee to be put on the card.
Finance Charge - The finance charge is the interest charged by the credit card company on the money you borrow. Every time you charge something on your credit card, you use the credit extended by your credit card company. Thus, you borrow money for your card purchases. For this "loan," you are charged a finance charge. Learn how to compute finance charges.
Late Fee - The late fee is the penalty for paying late (obviously). If you pay even a day late, you will get a late fee on your account. Late fees vary by credit card company and by type of credit card product.
Overlimit Fee - Overlimit fee is the penalty for exceeding your credit limit. For example, if you have a credit limit of $2,000 of which you have already spent $1,700, and you buy something worth $400, then you are going to be over your limit by $100 - and that's not counting the finance charge you'll still be charged on your card. That will mean an overlimit fee. This is usually a fixed amount.
Balance Transfer Fee - Obviously, this is the fee charged by credit cards for processing balance transfers. This is usually a percentage of the balance you have transferred or a minimum amount - whichever is higher. Learn more about balance transfers.
Cash Advance or Withdrawal Fee - When you withdraw money from a cash machine or ATM, you will be charged a cash advance or cash withdrawal fee. This is also usually a percentage of the amount of money withdrawn.
No-Good Payment Fee - A no-good payment happens when you pay through check or directly from your bank account and the check bounces or your account has insufficient funds. Your credit card company will then penalize you for the returned payment. It may also jack up your interest rates in result.
Currency Conversion Fee - When you use your credit card in one of your travels - or when you purchase something online that is priced in a different currency - your credit card company will convert the cost of your purchase into dollars (or whatever is your card's standard currency) and add a currency conversion fee. The actual amount of purchase plus the currency conversion charge will be the amount posted in your credit card statement.
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