How To Avoid Hidden Credit Card Charges - Part 2

2006-08-20

Back to Part 1 of How To Avoid Hidden Credit Card Charges

Another hidden fee that you will want to watch out for is the over limit fee. This will be charged when customers choose to go over their limit, and can be as high as $30. The solution to this problem is to use cash to pay for anything you need. You should only use your credit card when you need it for an emergency. You should not be using a credit card for everyday purchases. This is dangerous, and you are dependent on the credit card company. It is also important to watch for monthly service fees and annual fees. Most credit companies are now advertising "no annual" fees, but check the fine print to make sure.

A cancellation fee is common, and will generally run you about $25. This fee will be charged when a consumer decides to transfer their balance onto another credit card. Cash advance fees are extremely high and consumers will want to avoid them at all costs. Not only will you be charged as much as $30 for each transaction you make, you may also be charged an interest rate that is higher than the interest you will be charged when you make purchases. A number of credit card companies are even charging what is called "dormant account fees." If you don't use your card within a certain period of time, you could be charged as much as $15.

If you don't pay your bill on time, your interest rate may increase and it isn't uncommon for the rates to go up past 20%. There are a number of things you can do to fight against credit card companies. One of the best things for you to do is not use a credit card at all. If you need to buy something you can't afford, more often than not, you probably don't need it. If you want to buy it, saving your money is a much better alternative. If you wish to get a credit card anyway, it is critical for you to read the fine print and your statements. Look for any fees that may be present. If you have multiple credit cards, cut them all up and keep only one.

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