Quick Guide to 5 Common Credit Card Fees

1. Annual Fee

What is it: A credit card annual fee is a yearly "membership fee" for using your credit card and accessing its benefits (like rewards, points, or airport lounge access). This fee can range from S$100 to S$200 for basic cards, or S$400 to S$600 for premium cards.

Smart Tip: Some banks may waive the credit card annual fee if you meet a minimum annual spending amount. But did you know that there are, some credit cards (like the CIMB Visa Infinite, CIMB Visa Signature, and CIMB World Mastercard) that comes with no annual fees ever, which is a great option if you want a fuss-free card and not have to worry about paying an annual fee every year.  

2. Balance Transfer Fee

What is it: A Balance Transfer is a service that lets you move your outstanding debt from one high-interest credit card to a new card, usually to benefit from a lower, promotional interest rate. The balance transfer fee is the upfront cost for making this move, typically charged as a small percentage of the total debt amount you transfer.

Smart Tip: Balance Transfers are a useful way to consolidate and manage debt. Look for a credit card that offers a promotional 0% interest rate for several months (like CIMB’s Balance Transfer with 0% interest rate for 3, 6 and 12 months), but always factor the upfront processing fee into your total savings calculation. 

3. Late Payment Fee

What is it: Also referred to as credit card late payment charges, this is a flat fee charged to your account when you fail to make at least the minimum required payment by the payment due date. On top of this fee, you will also be charged interest on the outstanding balance.

Smart Tip: Set up an auto-payment for or calendar reminders so you never miss a payment deadline. Always aim to pay your full balance on time to avoid the late payment fee.

4. Cash Advance Fee

What is it: A Cash Advance is a transaction where you use your credit card at an ATM to withdraw physical cash directly from your available credit limit. The cash advance fee is the charge applied for this service (typically a percentage of the amount withdrawn, plus a minimum flat charge), and the borrowed amount is subject to daily-accruing interest.

Smart Tip: While a credit card cash advance is one of the options for short-term financial needs, you can also explore personal loan options with potentially lower fees and interest rates, such as a CIMB Personal Loan, which offers promotional interest rates as low as 1.60% p.a. (EIR from 3.07% p.a.) and low processing fees. 

5. Foreign Currency Transaction Fee

What is it: A Foreign Transaction is any purchase made in a currency other than your credit card's base currency (e.g., using a Singapore-issued card to buy something in US Dollars or Euros), whether you're overseas or shopping online. The foreign transaction fee is a surcharge applied by your bank to cover the cost of converting the foreign currency. Such credit card overseas charges are typically around 2.5% - 3.5% of the transaction amount.

Smart Tip: Consider getting a card that charges no foreign transaction fees (such as the CIMB Founders Card) or using a multi-currency account/card for overseas travel and online shopping to save money on currency conversion markups.

Make Smarter Credit Card Decisions with CIMB

Now that you understand these common credit card fees, you’ll be able to manage your finances more effectively. Explore CIMB Credit Cards with no annual fees and other CIMB Banking services to make smarter financial choices and keep more money in your pocket.