Understanding charges and fees for credit cards

Credit cards are riddled with charges and fees. Before getting a credit card understand what fees and charges involved and how they work. Not just the fees, many come with perks too. Compare all your options before choosing the right card.

Many credit cards carry an annual fee. They may waive it for initial couple of years like during the financial trouble time within the last few years and some comes with no annual fees. Look for a card with no annual fee but be aware that they may have other fees that we describe below.

Your credit limit comes with a cash advance which may be one half or some other amount of the total credit limit. In order to access your cash, the issuer normally charges one time fees and cash advance interest rate may be higher than your purchase interest rate.

I have one card that the issuer showers me with convenience checks more often before and after the holidays. They may offer lower interest rate to use them but the offer is limited to a time period. They may also charge one time fees for using them and rate may be different for purchases and paying off other bills. Understand how they work before using.