When on the hunt for a new credit card, most of us mistakenly focus solely on a card’s benefits. We dutifully compare bonus offers, the amount of cash or rewards we receive per purchase and extras like free travel insurance or yearly bonus rewards.
What we often forget to factor into our decision-making process is just how much using the card is actually going to cost us in real terms. Yes, most of us know to look at whether or not the card charges an annual fee, but what we tend to ignore are the smaller, less obvious fees. Sometimes buried in the fine print, these charges, which include things like foreign transactions fees, cash advance fees, late payment charges and a charge for credit limit increases can really add up and transform a seemingly worthwhile credit card into a hefty drain on your finances.
In a recent 2016 credit card fee survey, Creditcards.com, took a sample of 100 popular credit cards and compared all the possible charges. While the report surprisingly found that there was a small decrease in fees, the additional charges being levied by some companies can still pack a powerful punch to your bottom line. Here are some of the worst.
1. First Premier Bank Credit Card
This card charges a jaw-dropping total of 12 fees. On top of an initial annual fee that ranges between $75 to $125, there is also a one-time processing fee of $95. Other fees include a cash advance fee of $6 or 5 percent of the amount (whichever is greater), a late payment charge of up to $37 and a returned item charge of $35. There is even a monthly servicing fee of $6.25 to $10.40 (waived in the first year) and, if you get a credit increase, you’ll be charged 25 percent of the amount of the limit increase.
2. First Premier Bank Secured MasterCard
This card also features a total of 12 possible fees. The charges are much the same as for the First Premier Bank unsecured card, though there is no processing or monthly fee and the annual fee is $50.
3. Credit One Visa Platinum
This card has 11 potential fees, including an annual fee of $0 to $75 for the first year and $0 to $99 afterward. It also comes with a late payment charge of up to $37 and a returned item charge of $35. The cash advance fee ranges from 3 percent to a rather steep 8 percent.
4. Club CarlsonSM Business Rewards Visa® Card
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Club Carlson(SM) Premier Rewards Visa Signature® Card
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This business card also has 11 possible fees, which include a $60 annual fee, a $39 over limit and returned payment charge and a $19 to $39 fee for late payments.
While many fees are avoidable, your safest bet is to make sure you choose a card that gives you more than it takes.
[Image via Getty]