From CFPB report on consumer credit card market:

Answer: It depends.

• For prime borrowers (mass market) with credit scores in the 650-675+ range: Late fees represent about 50% of total fees collected from this market segment with Annual/Maintenance fees second at about 20%
• For mass market subprime (between 600 and 650-675): Late fees represent about 70% which makes sense since these borrowers are struggling and can be expected to skip payments as a result of financial strain.
• For subprime specialists (borrowers below 600): Annual/Maintenance fees are highest. These borrowers seem to be so happy to get approved that they don’t read the fine print to see these high fees (as suggested by recent CFPB report).

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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