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December
2, 2008
Credit
Card Late Fees Average $34.09, Over-the-Limit Fees Average $36.53
Our latest survey of credit card fees finds
the average credit card late fee at $34.09, while the average
over-the-limit fee is $36.53. Using data from a cross-section
of major and minor card issuers, IndexCreditCards.com found
that late and over-the-limit fees ranged from $0 to $39. However,
most nationwide issuers charged between $29 and $39 in both
categories, with certain smaller issuers a bit more lenient.
As
a frame of reference, a $34.09 average late fee is roughly equivalent
to the monthly finance charge you'd pay if you carried a $2,900
balance at 14% interest.
Over-the-limit
fees are even higher, and many cardholders find them even more
galling, as logic would suggest that a card would simply be
rejected if it hits the limit. Instead, most card issuers allow
you to go over your limit, but then charge you a fee for doing
so.
Many
credit issuers use a "tier" system in assessing fees.
For example, your late fee may be $15 if you have a balance
of less than $100, $29 if the balance is less than $250, and
$39 for balances beyond that. IndexCreditCards.com attempts
to take into consideration these fee tiers when calculating
the average fees listed here.
IndexCreditCards.com surveys the terms and conditions of a cross-section
of cards every six months to determine these average fees.
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