There is a credit card for almost every type of consumer. Whether your preference is to find the card with the lowest interest rate or a card that gives you a good cashback reward, then one will be available.
Make money online with the help of affiliate marketing. |
However, you should always be careful about fees. In this post, we will cover some of the most common credit card fees and what you can do to avoid them.
Normal credit card fees
Before applying for a new credit card, here are some secret fees you may want to keep in mind.
Annual fees
Not all credit cards are free to use. Many have an annual fee, which can be in the hundreds of dollars for premium cards.
Foreign transaction fees
Do you like to travel outside the United States? If you do this, it may result in foreign transaction fees to cover the exchange between currencies. At a possible average rate of 3 percent per transaction, these costs could increase rapidly.
|
Although credit cards always run zero-percent APR promos that try to persuade you to transfer your balance from one card to theirs, you need to be careful. Each transfer can result in a charge of 3 to 5 percent. That means $10,000 in arrears can cost up to $500!
Late payment fees
If you ever delay the minimum payment, at least once, you may be charged a minimum fee of $29. On top of that, your credit score can be a hit.
Interest rate
It is well known that if you do not pay your credit card balance in full, you will likely be charged interest for keeping the balance. However, what is not well known is that your interest rate may change over time.
Most cards have a variable called APR. This is a rate that fluctuates in the form of changes to the key rate (i.e., a rate that banks use as a basis for certain loans and credit lines). Therefore, if you have had your credit card for more than a few months, there is a good chance that your current APR is not what you had when you first received the card.
Avoid using hidden Charges by comparing credit cards
To avoid these annoying fees, do something ahead of time and compare credit cards. You can do this by visiting a reputable credit card query site where offers can be compared side by side.
You May Also Like These Posts
Greatly these sites also give their customers the ability to apply filters. This makes it easier to eliminate people with annual fees or other expenses that you do not want to deal with.
Of course, the best line of defense is to read the best print before filling out the application. Once you've narrowed down your options, take the time to read the credit card terms and conditions to understand what fees they charge.
Depending on the type of card, many of them may not apply to you. However, it is always a good idea to be aware of them so that you can avoid them if needed.
Once you have your card, one step that will help you avoid almost any fees is to set up automatic payments. With your account on self-payment, it is almost impossible not to make or pay on time. This will likely protect you from interest, financial costs, and late payment penalties.