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Credit Card Late Fees Average $35, Over-the-Limit Fees Top $32

by Peter Andrew

Credit

Card Late Fees Average $35, Over-the-Limit Fees Top $32

Penalties for misusing a credit card can

be steep, with the average credit card late fee at $35 and the

average over-the-limit fee at $32.24, according to a new IndexCreditCards.com

tracking report.

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. In addition, several

?no-fee? cards have stipulations that make them less attractive

beneath the surface, such as requiring the card to be used for

purchases each month, or significantly raising interest rates

when multiple payments are late.

?It takes just one false move to get hit,? says Adam Jusko,

Research Director for IndexCreditCards.com. ?To put these numbers

in perspective, the $35 average late fee is roughly equivalent

to the monthly finance charge you?d pay if you carried a $2,100

balance at 14% interest?in other words, fairly steep.

?Over-the-limit fees aren?t quite as high, but to many cardholders,

they?re even more galling, the logic being that a card should

simply be rejected if it hits the limit. Instead, it may or

may not be rejected, but the fee will always be applied.?

This

tracking report is the first in what will be a quarterly analysis

of credit card late fees and over-the-limit fees at IndexCreditCards.com.

Published 06/21/06 (Modified 05/07/12)


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