4 credit card fees you should never pay
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
Annual fees
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.
Late fees
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.
Interest fees
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?
Comments
Your Comment “Have you filed your taxes yet? All tax returns are due on or before April 30 (or April 15 if you or your spouse are self employed), which means there are just about 2 months left to file your paperwork.”
Self Employed returns actually due June 15, but only if you don’t owe any taxes, if you do then its April 30!
I think there are times where an annual fee can definitely be worth the cost, depending on what you get for your fee. For instance, my card costs just over $100 per year but I get great travel insurance through it; if I had to buy travel insurance independently for the trips I take, I would be spending way more than than the cost of the card.
I think an annual fee can be acceptable for the right card, if you get something in return that’s useful to you. I have a cash-back card that I use for regular spending and pay off every week to avoid any interest or late fees. The amount I get in cash-back covers the fee and then some, so I end up getting a few bucks back (usually over $100) – better than nothing. Credit cards are tools that definitely deserve respect though, it’s very easy to abuse them.
I use a cash-rewards card but don’t pay a fee. Also use 1 Visa account for writing cheques but have the money in there first. Cheques are free so, voila, a free chequing account. I have about 9 credit cards, depending where I am purchasing, but ALWAYS pay them off as soon as the statements come in. And I use my cash-back for ALL purchases made, on it, even those under a $1.00 as it all adds up.
Its rare now that I ever pay for stuff with cash or my debit card because it doesn’t get me anything in return. Last year I got $118 cash back by using my credit card. It does have an annual fee of $39 a year, but that’s still $79 profit. I stopped using my debit card when I realized that my bank was charging me $.40 every time I made a purchase. All those bank fees really add up by the end of the month. How you pay is just as important as how much you pay!