Avoid Hidden Credit Card Fees
Watch out for hidden fees when you use your credit card…
Don’t be fooled into thinking you have a no-fee credit card; there’s no such thing! Even though you don’t have an ’annual fee’ and you pay your bill in full each month, there are other fees you might not even be aware of– unless you’ve read the fine print. Credit card issuers brought in over $13 billion in user fees last year alone– and that doesn’t include the $12 billion in late fees according to RK Hammer, a bank-card advisory firm.
Here are some suggestions to help you avoid the additional costs and hidden fees:
- Never take out a cash advance - Just like a loan, you’ll pay interest on your cash advance immediately with an additional fee added of up to 4%.
- Never use a ‘convenience’ check - You’ll be charged an additional fee to use a convenience check and the higher interest rate is often higher.
- Be aware of higher rates when traveling - A foreign-transaction fee may apply when you use your card abroad. Visa and Mastercard charge 1% and the card issuer may charge another 2%. Capital One is the only major issuer that does not charge these fees. Some credit unions only charge the fee imposed by Mastercard and Visa.
- Never pay your bill over the phone - In most cases, a per transaction fee between $5 and $15 is charged just for this priviledge. Pay your credit card bill by mail or online.
- Aviod special requests that carry additional or hidden fees - copy of your statement; replacement card; cancelled ‘convenience’ check– they could all cost you extra fees.
February 28th, 2008 at 11:48 am
[…] credit card companies’ pockets is to pay your bill in full each month. And do your best to avoid hidden credit card fees! Although credit card companies will still profit from merchants HAVE TO accept credit cards, you […]