Getting a credit card usually doesn’t cost anything upfront. In fact, most credit cards don’t charge an application or account-opening fee.
The real costs come from how you use the card. If you pay your statement balance in full each month, a credit card can cost you nothing beyond an annual fee, if your card has one. But if you carry a balance or miss payments, interest and fees can add up quickly.
Here’s a breakdown of the costs you may encounter.
Does It Cost Money to Get a Credit Card?
For most people, it doesn’t cost money to get a credit card. Most credit card issuers let you:
- Apply for free
- Open an account without an activation fee
- Receive your physical card at no charge
Instead, any costs typically begin after your account is open.
Why a Card May Still Cost Money Even if You Rarely Use It
A credit card can still cost money even if it spends most of its time in your wallet. For example, cards with annual fees typically charge that fee every year, whether you use the card or not. Or, if you carry a balance from month to month, you’ll owe interest even when there are no new charges.
The Most Common Credit Card Fees to Know
Understanding credit card fees can make it easier to avoid unnecessary costs.
Annual Fees
An annual fee is a charge for keeping the account open. It’s usually billed once per year.
Annual fees often help pay for premium benefits like higher rewards rates, airport lounge access, travel credits, or other cardholder perks.
Whether the fee is worthwhile depends on how much value you get from those benefits. For example, a $95 annual fee works out to about $8 per month, which may be worthwhile if you regularly use the card’s rewards and benefits.
Interest Charges
Interest can be one of the largest costs associated with credit cards.
Credit card interest charges usually apply when you carry a balance past the due date instead of paying the statement balance in full.
For example:
- If you charge $1,000 to the card and pay the entire statement balance by the due date, you generally pay no interest on purchases.
- If you carry part of that balance into the next billing cycle, interest may begin accruing at your card’s Annual Percentage Rate (APR).
A key rule to remember is that carrying a balance on a credit card costs money. The longer a balance remains unpaid, the more interest you may pay.
According to LendingTree, the average APR on a credit card in the United States was 23.79% as of July 2026.
At a 23.79% APR, a $1,000 balance could accrue about $20 in interest over one month before any fees or additional purchases, depending on how the issuer calculates interest.
Paying only the minimum payment keeps your account in good standing, but it doesn’t stop interest from accruing on the remaining balance.
If you want to see how minimum payments affect payoff time, National Debt Relief’s credit card minimum payment calculator can help.
Late and Returned Payment Fees
Missing a payment can be expensive. If you don’t make at least the minimum payment by the due date, your issuer may charge a late fee. If your payment is returned because of insufficient funds or another issue, you may also owe a returned payment fee.
In addition to fees, late payments can result in ongoing interest charges and may hurt your credit if they’re reported to the credit bureaus.
Cash Advance, Balance Transfer, and Foreign Transaction Fees
Cash advance fees may apply when you use a credit card to withdraw cash. In many cases, interest begins accruing immediately rather than after a grace period.
Balance transfer fees may apply when moving debt from one card to another. Even some promotional 0% APR credit cards charge a transfer fee.
Foreign transaction fees may apply when purchases are made outside the United States or in foreign currencies. Some cards charge this fee, while others don’t. The Consumer Financial Protection Bureau recommends reviewing a card’s fees before applying, especially if you travel internationally or transfer balances.
How Much Does a Credit Card Cost Per Month?
Another common question is: how much does a credit card cost per month?
The answer can range from $0 to hundreds of dollars depending on your balance, fees, and payment habits. If you pay your statement balance in full every month, your monthly cost could be $0, unless your card charges an annual fee.
If you carry a balance, your monthly cost may include:
- Interest charges
- Annual fees (if applicable)
- Late or returned payment fees
- Other transaction fees
Keep in mind that your monthly payment isn’t the same as your monthly cost. Payments reduce your balance, while costs are the interest and fees you pay to borrow money or maintain the account.
Are Credit Cards Really Free?
A card may effectively cost nothing if:
- It has no annual fee
- You avoid late payments
- You pay your balance in full every month
- You avoid optional services that trigger fees
On the other hand, even a no-annual-fee card can become expensive if you regularly carry a balance or incur penalty fees.
What Makes a Credit Card Expensive?
For most cardholders, the biggest cost drivers are:
- Carrying balances month after month
- Repeated late payments
- Cash advances
- High annual fees that outweigh the benefits received
- Frequent use of fee-based features
Managing your balance carefully and paying on time can help keep your borrowing costs as low as possible.
Bottom Line
Most credit cards don’t cost anything to apply for, and many don’t charge an annual fee. If you pay your statement balance in full every month and avoid penalty fees, using a credit card may cost you little—or even nothing.
However, carrying a balance, taking cash advances, or missing payments can quickly increase the cost of borrowing. Before applying for a card, review its fee schedule and APR so you know exactly what charges could apply and how to avoid them.
