Credit cards have a number of possible fees associated with them and most credit card companies do as much as they can to avoid advertising them. As a result, you might find yourself getting hit with fees that you didn’t realize existed.
Despite this new “truth in lending” attitude the credit card companies are suddenly taking on, there are a few fees associated with credit cards that you need to be aware of and that you need to inquire about before moving forward with certain transactions.
One of these fees is the late fee, which is the one that hits the most Americans every year. In fact, this little fee accounts for $31 billion in income for credit card companies every year. It is not unusual to pay as much as $39 for a late fee, and this is included on top of the finance charges you get hit with. To avoid this fee, it is a good idea to set up automatic payments or email reminders.
Another fee that many people don’t realize exist is the balance transfer fee. Many credit cards offer a special introductory rate on balance transfers to new cardholders, but they don’t make it a point to let you know that you will be paying a fee for that advance. If you read the fine print, you will find this information. But, if you don’t read this fine print, you won’t know about the fee. Be sure to look into this fee before initiating a balance transfer, as the fee may not be worth the savings you will gain from the interest.
If you plan on traveling to a foreign country, you might have foreign currency exchange fees assessed to your credit card. These fees are usually equal to about 3% of your purchase. Before you travel, check with your card issuer and be sure to use the one that has the lowest foreign currency exchange fee.
Going over your credit limit can also result in a fee, known in the industry as an “overlimit fee”. In order to prevent you from being inconvenienced, the card will allow the charges to be completed but will charge up to $39 and beyond for allowing it. Keep an eye on your limit and make sure to stay beneath it so you don’t find yourself paying these extra fees.
Related Posts:
- Watch Out for Credit Card Rip Offs - Consumers still must be on watch for credit card rip offs. With the credit card reforms in place, many consumers thought that the...
- Ask Questions About Your Credit Card Fees - One thing have learned over the years as a credit card user is that you should always question any fees or charges...
- Cab Drivers Want Relief From Credit Card Fees - Merchants across the United States are about to start discussing lower credit card processing fees, but there’s one group you can add...
- Tacking on Fees Breaks Agreements with Card Issuers - Recently, a news team in Portland, Oregon performed a bit of an exposé on small businesses that are charging fees to credit...