Kredittkort Gebyrer (Credit Card Fees) – Common Credit Card Fees

Credit cards are assets that lessen financial burdens, especially in an emergency. Charging expenses to the card and paying later makes daily life easier. Many banks and financial institutions offer such cards, and while they are convenient, they are not as free as they appear. Credit cards have several fees that accumulate over time as you use them. 

For example, every credit card has a spending limit, and exceeding that limit attracts charges. Also, missing a payment when it’s due increases the fees on the card. When you apply for one, the terms and conditions that come with a card usually list and explain the fees attached to the card. Therefore, paying close attention to the contract and agreement is crucial to maximizing your credit card experience.

Credit Card Fees and What They Mean

The following are the common charges that you must be aware of. This list is not exhaustive, so read your contract or talk with a professional to understand other possible charges and what they mean. We will also explain easy ways to avoid these charges where possible.

• Interest

As mentioned, every credit card has a spending limit. That excess expense must be paid off at a certain date already stipulated in the contract. Failure to do that attracts interest rates, usually called annual percentage rate (APR) on the agreement. Some cards have fixed APRs, meaning they do not match the prime or market rate. 

However, most cards have a variable APR, which matches the prime rate and fluctuates with the market. Since your card’s APR is likely varied, ensure you check your bill to calculate the interest and pay accordingly. The easiest way to avoid accruing too much or no interest is to pay your bill each billing cycle. 

Keep your expenses within your budget to ease the burden on your income. You can also opt for a card without an APR for the first two years. Click here to learn more about credit card APR.

• Invoice Fee

You may not know it, but there is something called an invoice fee. This refers to the charge for receiving a paper invoice for each payment or transaction. People used to prefer paper invoices before the days of emails and mobile devices. However, that means paying for the service, regardless of how little the fees are. 

Some people still prefer using that method to keep track of their transactions, but you can save a little by registering for the e-invoice service. It is faster, easier, and costs nothing. That means you will not have to pay that extra money to cover the invoice costs.

• Annual Fee

While a few services charge nothing for their credit cards, most have an annual service charge. Depending on the card type, it can be as little as $95 or as high as $600. As an incentive, some issuers give new signees the first year off, meaning they do not have to pay the fee for the first year after their registration. 

Subsequently, they can pay the money every year. However, that is uncommon, as most will charge the fee. One way to avoid paying the fee is to look for alternatives that offer the option of getting a no-annual-fee card.

Using it might affect the perks, such as rewards and bonuses. If that does not work or you already have a card for which you pay an annual fee, consider downgrading to a low or no-fee alternative.

• Foreign Transaction Fees

Most credit cards have a fee for every transaction carried out on foreign soil. If you live in Norway and travel to another country where you use it for any purchase, you incur a transaction fee, usually about 3% of the total transaction cost. This fee may eat into your pocket if you are a frequent traveler and heavy spender. 

Fortunately, some have a no-fee bonus on foreign expenses. You can spend all you want without incurring that extra for every transaction. Consider switching if foreign transaction fees take too much out of your pocket.

• Withdrawal Fee

Most banks take an amount for every withdrawal, whether at an ATM or inside the banking hall. Suppose you withdraw several times a day. That means paying the withdrawal fee the same number of times, which can affect your account. Depending on the type, it may be a direct amount, or the institution may charge a percentage of the withdrawn amount. 

Some credit cards charge different amounts when you withdraw money in another country, while others do not distinguish between local and international withdrawals. The fee is a staple for most cards, but you can choose a no-withdrawal-fee card to avoid the extra expense.

• Over the Limit Fee

Another credit card charge that is often overlooked is the over-the-limit charge. Typically, your credit card has a spending limit that you must not exceed. However, in emergencies, you may have to spend over that limit. For that excess, your issuer charges you. The issuer can block you from exceeding your limit unless you agree to pay for that access. 

In other words, the issuer needs your approval to bill you to approve your over-the-limit expenses. The amount depends on the institution and card type – a Mastercard gebyr may differ from a Visa – but it is usually small.

If you decline the charge, the issuer can block you from spending more than your limit. Fortunately, you can avoid paying this fee by keeping your credit card expenses below the limit.

Do not max out your credit cards because it poorly reflects on your credit history. You should ideally spend about 10% of your credit amount and have a timer to notify you when you are close to your limit. Avoid charging all your expenses to your card so you do not pay extra charges.

• Deferral Fee

Some card companies allow users to defer payment for a specific period. Both parties usually agree upon this period, and the cardholder must meet up with the next payment date. However, the owner does not have to pay anything during the deferral period, even within their billing cycle.

While this method sounds like a reprieve, you must know that it comes with a fee. The charge depends on the deferral duration; the longer the time, the higher the fee. 

That does not stop the accruing interest, so the issuer adds the deferral fee to the interest, which may make the sum substantial. A sensible way to avoid incurring a lot of debt is to avoid a deferral unless there is no other way around it. Pay your credit card bills when they are due, including the interest where applicable. But if you defer payment, do not postpone for too long to avoid increasing the fee.

8. Returned Payment Fee

Ensure you always have enough in your account to pay your credit card bills when they are due. Any returned payment due to insufficient funds attracts a fee. For example, if your scheduled payment from your account to the company is $500, and you have $400, the company will return it and charge you for it.

That only increases the amount payable to the issue. Therefore, check your account balance before payment is due and add money if there is not enough to cover the bills.

Conclusion

Credit card fees can be a hassle if you are unaware they exist. Many of the fees in this guide are commonly known, and card companies bill users accordingly. These little deductions can affect income or savings in the long run.

Therefore, acquaint yourself with the fees. Read the agreement from the issuer and ask questions where necessary. You can also follow this guide to avoid some fees and save money.