You Can Prevent Hidden Credit Fees

Credit cards have become notorious for their rising interest rates and astronomical fees, especially now during the credit crunch. So how can you avoid these fees that compound to your balance each month, ensuring you stay in debt a lot longer than you anticipated?
 

• The first and most important way to avoid abstract charges is to understand what is going on with your credit. Never assume everything is correct and monitor your statements carefully for credit card fraud, human errors, and incorrect information. If you find that your statement does not accurately reflect the actual situation, report it immediately and make sure you are not penalized for mistakes that are not your own.
   
• You should always know where you stand when it comes to your credit limits and your balance. Simply going over your credit limit by a dollar can cause your interest rates to rise overnight and lead to further debt. If you spend without that knowledge, you risk jeopardizing your credit card account as well as your credit card history.
   
• Pay your balances on time, each and every month. If possible pay online or way before the due day if paying through the mail. While many cards grant a grace period, companies are really getting strict about regulations. If you are so much as a day late, you can be penalized with a raise in interest rates plus the additional charges for being late.
   
• You can never be guaranteed of on-time mail delivery, especially during the holidays. You can also not count on your credit card company recognizing the date of your payment’s postmark, which used to prove on-time payments. Many credit card companies no longer allow for that. If you send back your payment in an envelope other than the kind provided by the credit card company, your envelope may not be considered a priority and therefore opened and processed days after other payments.
   
• Stay on top of all changes and disclosure information coming from your credit card company. Even if it looks like junk mail, make a point to open and review. Credit card companies can change terms at any time provided they provide notice in writing within 15 days of the imposed changes. It is not the credit card company’s fault if you throw away your mail without first reading it.
   
• Credit card companies can and will penalize you for being late paying the bills you owe other creditors. No matter that you pay your credit card bill in full and on time each month, you can still find your interest rate increased or your credit limit slashed for being late with your other bills.
   
• Some credit card companies will charge you a fee for not having a balance. Sad, but true. If you do not carry a balance, you will still incur finance charges on that card.
   

Chances are if you remain diligent and aggressive about reviewing your statements each month and paying your bills on time, you may not see to many “hidden fees” added to your bill. If you do, you can contact your credit card company directly to get answers. Before making accusations, be sure you have adequate knowledge of your original account agreements as well as the most updated disclosure information. Credit card companies may be willing to work with you in order to keep your satisfied with the service, especially if you are considered to be a good customer. But do not expect to neglect your financial matters and information and expect the credit card company to make exceptions to their rules.

Related Posts:

• Tips for Avoiding Late Fees - If you find yourself paying late fees for your credit card, it may be time to take another look at your payment...
• Outline of Various Credit Card Fees - Bank of America, based in Charlotte, N.C., boasted a circulation of 80.2 million credit cards last year.  It is the third largest...
• 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...
• Watch Out for Credit Card Fees - Credit cards have a number of possible fees associated with them and most credit card companies do as much as they can...

This entry was posted on Wednesday, November 26th, 2008 at 10:10 am and is filed under Debt & Consolidation, Tips & Advice. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.