Never Pay These 3 Credit Card Fees
Using your credit card correctly is a big part of growing your wealth. One simple trick to remember is to watch out for credit card fees. Some are unavoidable but others can be totally skipped with good thought and strategy. Save your money and never pay the three credit card fees below.
1. Late fees
Ideally, you will pay your balance in full every month. On the other months that you fail to do so, make sure you provide at least a minimum payment by the due date so you are not charged a late fee. This is an absolute waste of your money! There is the danger that you will be charged a penalty interest rate, and your issuer pulling back on some of your credit card perks, too.
It is not difficult to pay on time. Set up reminders and alerts or choose the auto-pay option. Remember that your payment history makes up a huge percentage of your credit score. Avoid the late fees and prevent your score from dipping low.
2. Foreign transaction fees
Always think about your needs when choosing a credit card. If you are a frequent flyer, find a card that does not charge foreign transaction fees. It does not make sense to pay more just because you are using your credit card overseas. Often, these fees are structured as a percentage and they add up fast!
Other perks to look for in a travel credit card include airline miles, travel insurance, and free checked bags. You have lots of options out there so do not just settle.
3. Cash advance fees
It is tempting to withdraw from your credit card when you are low on cash, but this is hardly a good idea. Cash advances are not worth it because of the expensive fees attached to them. Automatically, you are charged for withdrawing the cash. Then, the interest rates are really high, higher than for purchases or balance transfers. The interest accrues right away, with no grace period, too. To avoid the cash advance fees on your credit card if you can help it at all!