Credit card companies are notorious for charging fees. However, most of these extra charges can be easily avoided. Here’s a short list of credit card fees you should never pay, and how you can easily step around them.
Late Fees
The simple solution to avoiding late fees is to pay your credit card bill on time. However, things can happen and every once in a while, a payment might go in late. When you have a good payment history and you find that a payment arrived late, you can avoid the fee by simply calling the credit card company and asking them to waive it. Most agencies will do this once or twice a year for good customers.
• Avoid it completely – Sign up for online bill pay and schedule the payments to be sent automatically every month.
Annual Fees
A lot of cards charge them, but you don’t have to pay them. When reviewing a credit card offer, look closely at the fine print. If there’s an annual fee, refuse the offer and find another card that does not charge annual fees.
• Avoid it completely – Credit cards can change their terms at any time. However, you have the right as a consumer to have the card cancelled and all the terms you originally agreed to regarding fees and interest will remain in place. Simply call the company and opt out of the new program.
Cash Advance Fees
You can skip cash advance fees by not getting a cash advance from the card company. If you do need a cash advance, call the company and ask for convenience checks. There’s no advance fee attached with these, although you may still pay a higher monthly interest rate.
• Avoid it completely – To eliminate the temptation permanently, shred the pin number on your card so you can’t use it at the ATM.
Over-the-limit Fees
If your card limit is five hundred dollars, you will be charged with a fee for going just a penny over. If this happens due to the monthly interest charges or a late fee, call the company and ask them to waive the fee. Avoid the charge by leaving a cushion on your card.
• Avoid it completely – Some companies offer a service where they will text message you or send an e-mail if you’re getting too close to your limit. Be sure to sign up for this service to avoid any unwanted fees.
Check-by-Phone Fees
Most companies can take a check over the phone if you realize you’re running behind and are trying to avoid a late fee. However, some will charge for the service. Always ask if there is a fee involved before doing a check-by-phone transaction. Ask to have it waived if there is one. You might also be able to make the payment online to avoid the fee.
• Avoid it completely – Online banking can be your best friend. Sign up for automatic bill pay so you never have to worry about doing a check by phone, or paying late fees, again.
Jesse Ramirez writes for CreditCardCompare.com.au, a review and comparison site for instant approval credit cards from all the major companies.