Home

If you make a mistake with your credit card account – by paying late or charging more than the limit – a small bank or credit union will be more forgiving, according to an analysis by Justin McHenry of IndexCreditCards.com.

Perhaps this is no surprise. Big banks are rarely the right choice for consumers for banking, saving or borrowing. And they’re definitely not a place to do investing. But most people use big banks for credit cards. If you occasionally incur penalties, it might be worthwhile to get a different card from a smaller institution.

Here is a sampling of fees…

…AT LARGE CARD ISSUERS

        American Express — $38 late fee, $35 over-the-limit fee (on revolving credit cards only)

        Bank of America — $39 late fee, $39 over-the-limit fee

        Capital One — $39 late fee, $39 over-the-limit fee (some cards offer lower credit-limit fees)

        Chase — $39 late fee, $39 over-the-limit fee

        Citi — $39 late fee, $39 over-the-limit fee

        Discover — $39 late fee, $39 over-the-limit fee

        GE Money — $39 late fee, $35 over-the-limit fee

        HSBC — $39 late fee, $39 over-the-limit fee

        National City — $39 late fee, $39 over-the-limit fee

        U.S. Bank — $39 late fee, $39 over-the-limit fee

        Wells Fargo — $39 late fee, $35 over-the-limit fee

…AT SMALLER COMMUNITY BANKS

        First Command Bank (Texas) — $0 late fee, $0 over-the-limit fee

        City National Bank (Taylor, Texas) — $0 late fee, $0 over-the-limit fee

        First Federal (Charleston, South Carolina) — $6.20 late fee, $10 over-the-limit fee

        Central Bank (Kentucky) — $5 late fee, no information on over-the-limit charges

        First Financial Bank (Indiana) — $17 late fee, $20 over-the-limit fee

        Armed Forces Bank — $20 late fee, $20 over-the-limit fee

        United Bank (Wisconsin) — $20 late fee, $20 over-the-limit fee

        5 Star Bank — $20 late fee, $20 over-the-limit fee

        Union State Bank (New York) — $20 late fee, $25 over-the-limit fee 

…AT CREDIT UNIONS

        Christian Community Credit Union (California) — $10 late fee, $10 over-the-limit fee

        Charter Oak Federal Credit Union (Connecticut) — $15 late fee, $15 over-the-limit fee

        Black Hills Federal Credit Union (South Dakota) — $15 late fee, $18 over-the-limit fee

Says McHenry: “Big banks are more aggressive with their offers, and often use promotional rates or unique reward programs to draw you in, but the fine print shows they’re not always offering the best financial deals. While this study highlights credit card fee differences, interest rates are also often lower at smaller banks. And, with large credit card companies tightening credit standards recently, this is definitely a good time for consumers to give their local lenders another look.”