All credit cards come with a whole range of fees but there is no need to be afraid of the fees. There are ways to avoid these fees.

Here is a list of some of the credit card fees and how to avoid them.

  1. Annual Fees

Some credit cards charge annual fees for holding a credit card and the benefits that come with it. These benefits could be in the form of travel rewards, cash back, extended warranty on purchases and so on. Depending on the card, the annual fee may be worth it in exchange for the benefits.

If you don’t want to an annual fee, then there are cards available with no annual fees. However, you may have to settle for a bare-bones credit card, that does not offer any benefits.

  1. Balance Transfer Fees

A balance transfer fee is a fee to transfer a balance from one credit card to another. There are benefits to transfer balance between cards, this is to transfer credit card debt to lower interest rate cards. Some cards charge a certain percentage of the amount being transferred, while some cards don’t charge anything.

Calculate if it’s worth paying the transfer fee before opting for the balance transfer benefit.

  1. Cash Advance Fees

Cash advance fees are charged when you withdraw from your credit card through an ATM or a cash advance cheque. This option should be avoided at all costs, the fees charged can quickly pile up. You will have to pay a cash advance fee, a higher interest rate on the withdrawal and most likely ATM fees.

  1. Interest Charge

An interest charge is obviously an interest amount on the balance carried forward. You will continue to pay this charge as long as you have a carry forward balance on your statement. The easiest way to avoid this charge is to pay the statement in full every month.

  1. Late Payment Fees

This is a fee charged when you fail to make the minimum payment on your statement by the due date. The actual fee charged varies between cards. This is a totally avoidable fee. The easiest way to ensure you don’t end up paying late payment fees is to set-up automatic payment every month. Keep in mind that late payment fees can adversely affect your credit score.

  1. Over Limit Fees

You will likely see an over limit fees if your balance is in excess of your credit limit. Avoid over limit fees by closely monitoring your credit card balance, check your balance regularly. This fee can also negatively affect your credit score.

  1. Foreign Transaction Fees

A foreign transaction fee is charged when a card is used outside the country of issue. Most credit cards charge this fee; the exception may be travel cards but depends on the card.

 

The best method to avoid credit card fees to carefully read the terms and conditions attached to your credit cards.

 

 




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