Avoiding Credit Card Fees

How to Avoid Paying for Costly Prepaid Credit Card Fees

Credit Card Fees

Understanding and Avoiding Credit Card Fees

Credit Card Fees >> When you have a credit card, it can be easy to get used to the easy money that the service provides. It's true that spending can quickly get out of control. However, even people who think that they have taken all the steps to manage their money responsibly can be surprise by excessive credit cards fees. With so many hidden or hard to understand charges, it's important to get a handle on this money drain and make sure that your credit really is working for you. Here's just a few things to look out for.

Late Fees

This fee is pretty standard among all credit card companies. Your provider wants to encourage you to pay on time and penalizes you if you don't. Companies make a substantial part of their profits on these credit cards fees. The best way to avoid this is to pay on time. Some companies actually have a specific cut off time that they want to have your payment in hand and will charge the fee if it is even an hour later than specified. Try setting up an automatic payment schedule with your bank. If you get in a real bind, you should be able to call your company and pay over the phone with an electronic check. Just make sure that using that service won't incur a processing fee as well. All cards have some kind of late fee attached.

Balance Transfer and Cash Advance

Most companies offer the convenience of using a cash advance service. You can use convenience checks sent periodically with your statement to pay bills, buy groceries or even write yourself a check. This service, however, is not free! There are credit cards fees associated with each transaction. If you transfer a balance to get relief from a high annual percentage rate, you can also expect to see a little extra charge. You will need to determine whether the fees associated with these transactions is worth the cost and use the services sparingly, at best. Most cards offer a cash advance service. If you are determining whether to use a balance transfer, check carefully to see what the associated fees are.

Over Limit Fees

Another category where you credit card will try to catch you unaware is your actual credit limit. It used to be that once you reached your particular credit limit, the company would cut off access and your card would be denied. However, the companies now usually let the transaction clear and just charge you credit cards fees for going over your limit. First, if you consistently live that close to the edge, you should really take a good look and your finances and manage your money better. To avoid it in the future, put away cards that you know are getting close to the limit. If you are unsure whether this may apply to your particular card, ask what the policy is on going over your credit limit.

There are several other ways that companies can try to get a little extra money out of you. Some will charge you to maintain your card even when it's free from a balance. Others may claim that there are administration costs. If you feel you are being taken advantage of, you don't have to keep your card. A company can not report negatively on your credit report for closing a card that is free and clear, regardless of what they may claim. Also, if you are a good customer, it never hurts to ask for credit cards fees to be removed or reduced. If you have a history of paying on time, your bank will likely be happy to remove a one time late fee to keep you as a happy customer.

5 Tips on How to Avoid Paying for Costly Prepaid Credit Card Fees

Although more and more people have become interested in prepaid credit cards over the recent years, it cannot be denied that it has also gained a great number of critics and skeptics. Negative views about prepaid cards can primarily be attributed to the fact that these cards involve quite a number of fees or charges. Little do they know that there are ways to avoid paying all these fees. You want to know how?

5 Tips How to Avoid Prepaid Credit Card Fees

• Choose a card which requires no activation fee. Although most prepaid charge cards come with an activation fee, there are several cards which do not require any amount of money for activation. However, the activation fee is not the most important fee to avoid; given that it is only a one-time charge and is usually only very minimal. What other things can you do?

• Choose to do signature transactions over PIN transactions. Most prepaid cards do not charge a fee for signature or "debit" transactions but do impose fees for PIN or "credit" transactions. So, when you use your card, make sure that you make your purchase through debit and not credit. How about withdrawal fees?

• Avoid ATM withdrawals. Withdrawing money from an ATM machine using your prepaid card may sound very convenient and enticing. But, you should avoid doing this; especially if your card charges you for every withdrawal or ATM transaction you make. Instead, you can choose to get cash from authorized stores and outlets which do not charge you extra for a withdrawal transaction with them. What about fees for asking assistance from customer service?

• Don't choose a prepaid card that charges for customer service. There is nothing more offensive than having to pay for a fee just to obtain assistance from a customer service representative of your credit card company. This just shows how unwilling a company is in offering help to their clients. Now, what is the best way to avoid prepaid card fees?

• Read and understand terms and conditions properly. The real key to avoid getting burned by prepaid charge card fees is to read the fine print carefully. Be aware of the fees that your prepaid card company imposes and find a way to work around things like the tips stated above. So why again, should I get a prepaid credit card?

Prepaid cards have become a sensation for no reason-they are convenient and secured. However, like most things, they have their own drawbacks; and one of which is the fees that most of them come with. But if you are wise and careful in using your card, you will be able to enjoy the convenience they offer and these prepaid credit card fees won't be a problem to you.

Tag : credit card fees explained, credit card fees for nonprofits, credit card charge in texas, credit card abuse charge in texas, can you charge credit card fees in texas

Share this post