Credit Card Late Fees Average Over $35, Over-the-Limit Fees Top $36
May 21, 2008
The average credit card late fee is now $35.20, while the average over-the-limit fees checks in at $36.10. 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.
As a frame of reference, a $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.
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.