Lenders are in the business of making money. To make a profit, they may assess charges other than interest, especially if you fail to follow the agreement of your account. Most of the fees are specific to credit cards, and the amount of these fees vary among credit card issuers.

1. Carrying charge--a fee some companies charge for processing the paperwork associated
  with an installment loan. The carrying charge may be added to the purchase price or the unpaid
  installments.

The following are specific to credit cards

2. Annual fee--the yearly membership fee you pay for using the credit card. The range can be
  from $0 to $75.

3. Cash advance fee--a charge you pay for the convenience of getting cash using your
  credit card rather than making a purchase. In addition to the cash advance fee, issuers may
  charge a higher interest rate on the cash advance. Important note: The interest charges on cash
  advances start immediately. There is no grace period even when the previous balance was
  paid in full.

4. Late fee--a charge that you pay if your monthly payment is received after the due date.
  Currently, to be considered on time, the payment must be received by the card issuer and
  processed by the due date.

5. Over the limit fee--a fee for exceeding your credit limit. Your limit or credit line can be
  found on the original agreement you received with your card. Your credit line and the available
  credit are included on each monthly statement.

6. Transaction fee--a fee charged each time you use the credit card. This is not a common
  fee among credit card issuers.

To find the fees for your credit card, look on the back of a recent statement or call the customer service department of your credit card issuer. Many credit cards have the customer service toll-free number listed on the card.

Prepared by Cathy Faulcon Bowen, assistant professor, Department of Agricultural and Extension Education.