Many people think that credit cards are evil and should be avoided at all costs. I am not one of those people.
With a bit of discipline, I truly believe that credit cards can actually be a very useful financial tool (especially if you use a card that gives you rewards). However, you could be charged a bunch of different credit card fees if you’re not careful.
4 Credit Card Fees You Should Never Pay
There’s just no reason good enough to pay annual fees on your credit card. There are a ton of cards out there that are absolutely free to use.
If you want a credit card, stick with those that don’t have an annual fee attached to them.
If you’re paying late fees, it’s likely because you just don’t have a good schedule for getting your card paid off.
Make sure that you are paying the minimum payment on your credit card each month, at least.
Though sometimes you can participate in a 0% interest promotion, most of the time, if you’re carrying a balance on your credit card, you’re paying interest.
The first thing you want to do is contact your credit card company and ask for a lower interest rate. Then, call some other credit card companies and ask about getting a 0% balance transfer. Finally, get your balances paid off as quickly as possible!
Cash Advance Fees
In case you’re unaware, a cash advance is when you withdraw cash against your remaining credit card balance.
Cash advance fees are one of the worst credit card fees you can pay because you’re charged immediately after you use the cash advance. Don’t take advantage of these cash advances!
“Your goal should be to pay off your credit card bills in full at the end of each month and set aside money toward your emergency savings.” – Suze Orman
Do you use credit cards? Why or why not?