Avoiding Getting Hit With Credit Card Fees
The credit card industry is undergoing an overhaul these days. The reason for the overhaul depends on who you ask. According to the credit industry, the overhaul is their way of trying to cope with the ailing economy and to adapt their business model to a changing credit landscape, i.e. the enactment of the credit card bill. Critics of credit card companies are quick to point out that these companies are really just trying to make a last ditch effort to take as much cash as they can from card holders before the credit card bill puts a clamp on them. They are also trying to squeeze in through the loopholes of the bill, these critics say.
Be that as it may, for the average card holder, the reasons for the overhaul are hardly as important as what the overhaul is doing to their credit cards. Because of the overhaul, credit card holders are finding out that they are losing available credit just as fast as they’re paying off their balances, their interest rates are going sky high and credit card fees are becoming more and more common while increasing as well/
As a card holder, a very effective way for you to avoid ruining your monthly budget because of the overhaul of the credit industry is to avoid as much as possible credit card fees. What follows are some tips on how you can avoid common credit card fees.
Annual fees
Annual fees are making a come back nowadays. These are fees that you pay for the privilege of having a credit card. While annual fees are becoming increasingly common, not only credit cards carry these fees. The best way to avoid them is to shop around for a better deal.
Cash Advance and Balance Transfer Fees
You really should not use your credit card for withdrawing cash. While the resulting fee may be a one time deal, the amount is quite high. Balance transfers will also get you tagged with fees nowadays. Shopping around for better deals is the way to go. You should also keep an eye out for promos. You can also try and ask if the fees can be waived, though the chances of that working are slight.
Over The Limit Fees
Credit card companies like to say that their over the limit protection is simply a mechanism to help credit card holders avoid the embarrassment of paying with plastic only to find out that they are over the limit. That actually sounds like an intelligent and kindly plan from credit companies. That is until you realize that over the limit charges will get you slapped with over the limit fees. To avoid getting hit with over the limit fees, always keep an eye on your balance and on your credit ceiling. That’s not easy to do, what with the fast pace of credit cutting down that credit companies are doing. A more effective way would be to contact your creditor and cancel the over the limit service for your card.
