Hidden Credit Card Fees
Stop Paying Hidden Credit Card Fees!
Here's How To Avoid Them
Hidden credit card fees are not what most people looking for a new credit card think of. When looking at credit card offers, the two things most people look at are the interest rate (APR) and the features such as rewards or incentives. And it's no wonder. The credit card companies often bury the fees in the fine print on the back of the application form.
Almost all credit cards come with fees for various service transactions, and it's good to know what these charges are for, how much they will cost, and how to avoid paying them. After all, why pay out hard-earned money needlessly?
Let's take a quick look at the types of hidden credit card fees you might encounter and how to avoid them.
Annual FeeThe annual fee is one of the most common fees charged by the card companies. Some major credit cards carry an annual fee simply for the privilege of using it.
Sometimes, this annual fee can be negotiated away if you contact the company's customer service representative and request an exemption. The companies face very heavy competition nowadays, and you might receive a favorable response. It's worth a try.
Some companies offer a credit card with no fee attached, and if you can find the best no fee credit card to suit your needs, it can be a good way of avoiding credit card fees. A "no annual fees credit card" can save you significant money over the course of several years!
Cash Advance FeeIf you use your credit card to obtain a cash advance, many credit card companies will charge you a fee for the service. The cash advance fee will vary between companies and type of credit card used, but it often amounts to around $2.00 or $2.50 per transaction, and it can be double that amount or more if the cash advance is obtained while you are out of the country.
Cash advance fees, like all hidden credit card fees, are added to your card balance, and you will begin to pay interest on them from the day they are incurred. If you obtain many cash advances, these charges can quickly add up and represent a sizable expense over the course of a year.
Avoid using your credit card to obtain cash advances as much as possible. Budget carefully, and if you need cash, withdraw it from your bank account instead. Plan ahead and save money.
Balance Transfer FeeCompetition is fierce among the banks and credit companies, and they are continually looking for ways to attract your business. Many card companies offer attractive introductory interest rates on balance transfers to low interest credit cards. It can be a great way to consolidate all your debts in one card account and pay them off during the introductory low or no interest period.
Free credit card debt consolidation offers one of the best debt consolidation opportunities available. However, while some companies offer to waive all fees, others charge a balance transfer fee for the privilege of transferring your balance from another card. This can make the debt reduction benefit less effective.
Here's one of the best tips on obtaining free credit card debt consolidation:
Before you complete your credit card application and have any balances transferred, read the fine print and find out if there will be fees charged. If there are, simply look for another card which offers free balance transfers.
Choosing The Best Balance Transfer Credit Cards
Dishonored Payment FeeThe dishonored payment fee is a sizable fee that's charged when you make a payment that does not end in a cash transaction. For instance, if you send a check to cover your monthly payment and it bounces, you could be charged a dishonored payment fee that amounts to $25.00 or more. In addition, you might also be subject to a sizable NSF check charge by your bank.
If paying off credit card debt by check, always make sure you have enough in your bank account to cover the transaction.
Over Limit FeeAn over limit fee is charged if you make purchases or take out cash advances over your established credit limit. This fee is another sizable fee which can be as much as $20.00, or more. It pays to know your card's credit limit and to monitor your spending so you don't go over that limit and have to pay a costly penalty.
Additional Monthly Statement Copy FeeIf you should ever require the credit card company to provide you with a copy of your monthly statement for showing proof of purchase or for other reasons which may arise, you will be charged a fee for the service, often up to $2.00 per statement.
To avoid this expense, always keep your monthly credit card statements. Never throw them out. After you pay your monthly balance, file the statement in a safe place so you will have it handy for tax time or for any unexpected need like a proof of purchase.
Miscellaneous FeesSometimes, depending on the company and the type of credit card, there can be fees charged for things like late payments, account setup, currency exchange, return items, and insurance. Be sure to read the fine print on the credit card application so you will know exactly what services you could be charged for and avoid needless expense.
Hidden credit card fees can mount up and if your card carries a high annual interest rate, fees can represent a significant cash outlay. Always look for the best no fee credit card deal. Many hidden credit card fees can be avoided by using a little wisdom and foresight.
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