Credit card companies charge their customers a variety of fees for the privilege of using their cards. Two of the most common types of fees are annual fees and cash advance fees.
An annual fee is an amount that the user is charged to use the card. The fee is billed directly to your credit card. When you first sign up for a card you will be told how much the fee is and in what month it will be withdrawn from your available balance. If you request an additional card then there will be a fee for that. In some instances credit cards that have an annual fee are likely to offer a lower interest rate or more benefits and rewards.
If you need to get cash from your credit card because you are in a financial bind then the credit card fee you will be charged for this is known as a cash advance fee. You will be charged this fee if you withdraw money from a bank machine with your credit card or if you go to the teller at the bank to withdraw the money directly.
A cash advance fee is either a fixed amount per transaction, a percentage of the transaction or a fixed amount plus a percentage. Some credit card companies set minimum and maximum amounts for cash advance fees. Be aware that you are charged interest on a cash advance from the moment the money is withdrawn.
This is different from when you make purchases on your card and are granted a grace period. The sooner you are able to pay back the money that you have been advanced on your credit card the better it is for your credit rating.
Below we have listed some resources to help you find more of the credit card information you are looking for regarding fees attached to credit cards.
