4 Fees to Watch Out for if You're Applying for a Credit Card in 2023

Keep these in mind as you add new credit cards to your personal collection.

If you spent much of 2022 grappling with credit card debt, then you may be ready to swear off credit cards in 2023. But if your financial picture is brighter, a new credit card could actually give you more spending options and make your life more convenient. It could also open the door to more cash back and rewards. 

But if you'll be applying for a new credit card this year, keep these fees on your radar. They don't apply to every card, but they might apply to one of yours.

1. Annual fees

Some credit card companies impose a yearly fee for the privilege of having a credit card. Now at first, annual fees might seem like something you should make every effort to avoid. But often, paying a modest annual fee might make it so you're able to reap extra credit card rewards. It pays to run the numbers if you're looking at a card with an annual fee to see if it makes sense.

Let's say you're charged an annual fee of $95 for a specific credit card. If that card's rewards program is such that you're able to rack up $150 more in rewards than you would on any of your other cards, then guess what? If you pay that $95, you'll still come out $55 ahead. So don't assume you should automatically skip those cards that come with a fee, because you might get your money back and then some.

2. Balance transfer fees

If you owe money on a few different credit cards, moving those balances onto a new card could pay off -- especially if your balance transfer offer comes with a 0% introductory interest rate. But be careful, because balance transfer fees will often come into play with these offers, and you don't want to get stuck with an overwhelmingly large one. Still, if you're looking at a reasonable balance transfer fee, you might save yourself some money -- and hassle -- in the course of paying off your debt by only having one monthly payment to contend with.

3. Foreign transaction fees

Some credit card companies will charge a fee if you use your card overseas. This isn't universal, though, so if you plan to do a lot of travel abroad, you may want to focus on a credit card where this fee doesn't apply.

4. Late payment fees

Late payment fees are among the most avoidable when it comes to credit cards. The reason? If you pay on time, they won't come into play. And to be clear, if you make your minimum payments on your credit cards, you'll be considered to have paid on time. 

Still, many credit cards charge late payment fees, so read the fine print to see what yours entails. In 2019, the average late fee amounted to $26, according to the Consumer Financial Protection Bureau.

Credit card fees have the potential to be costly -- and they shouldn't catch you off-guard. So be mindful of these specific fees if you'll be adding new cards to your personal mix in 2023.