Credit cards can offer you a great deal of convenience when you are short on cash.
Be careful, however, as credit cards can have many fees attached to them. In fact, the average credit card can have up to 10 fees that can eat into your income. Here are the 10 most common credit card fees and how to avoid them.
A late fee (or penalty) is a fee you will have to pay if youdo not make the minimum payment by the due date. With the late fee, you could pay up to $35. Therefore, you should do your best to avoid paying these fees.
So how do you avoid late fees? First, you need to know when the minimum payment is due on your credit card. Also, make your payment at least 5 business days before the due date to ensure that it is processed on time. You can set up automatic payments with your financial institution to ensure that you do not miss any payment .
If you use your credit card to withdraw money from an ATM, you may incur fees. These fees do not come from the credit card company itself. They come from the distributor.
So how do you avoid those ATM fees? Chances are, some ATM networks have a relationship with your credit card company and offer free transactions. Be sure to use ATMs that are part of your credit card network. If your credit card does not offer free ATMs, do your best not to use your credit card to get cash advances.
Si vous utilisez votre carte de crédit dans un pays étranger dont la devise est différente de celle de votre pays d’origine, des frais de transaction étrangère peuvent vous être facturés. Ces frais peuvent représenter jusqu’à 3 % du coût total de la transaction.
La meilleure façon d’éviter les frais de transaction à l’étranger est d’obtenir une carte de crédit qui ne facture pas de frais de change.
Voici trois cartes de crédit populaires qui ne comportent actuellement aucuns frais de transaction étrangère. Ces cartes sont des options intéressantes si vous aimez voyager souvent à l’étranger :
Certaines cartes de crédit vous feront payer des frais annuels. Ces frais peuvent aller d’environ 30 $ à plusieurs centaines de dollars par an. Alors que certaines cartes offrent les frais annuels la première année, d’autres d’en exigent tout simplement pas.
Voici un aperçu de quelques-unes des meilleures cartes de crédit sans frais annuels :
A finance charge is a fee that you are charged when you maintain a balance on your card for an extended period of time. This is where credit cards make their money.
If you want to avoid finance charges, you must pay off your credit card each month. However, if you intend to carry a balance on your card, look for a card with a low annual interest rate.
Les frais de transfert de solde sont des frais que vous payez lorsque vous transférez le solde d’une carte à une autre. Habituellement, le taux de transfert de solde est soit de 5 $, soit de 3 % du montant total transféré, selon le montant le plus élevé.
Vous pouvez éviter ces frais en utilisant une carte qui n’exige pas de frais de transfert de solde et qui offre un taux d’intérêt annuel de lancement de 0 %. Ces cartes sont idéales si vous souhaitez rembourser vos dettes sans avoir à vous soucier des frais de transfert de solde et des taux d’intérêt élevés:
Overlimit fees are fees you pay if you spend more on your credit card than your current limit. To spend more than your limit, you will need to register for this feature.
If you do not opt to go over the limit, your credit card will be declined if you attempt to spend over the limit. Under Canadian law, a credit card company can only charge an over-the-limit fee twice per billing cycle.
If you want to avoid overlimit fees, simply do not accept the opportunity to spend more than your current credit card limit.
Cash advance fees are fees charged when you use an ATM to get money from your credit card. Generally, the fee for a cash advance is a percentage of the transaction amount or $10, whichever is greater.
To avoid cash advance fees, use your credit card to make a purchase instead of paying with cash.
If you attempt to pay your credit card balance and there is insufficient funds in your bank account, the credit card company may charge you a return payment fee. This fee can be as high as $30.
To avoid these fees, make sure you have enough money in your bank account to cover the payment.
Expedited payment fees are fees that the credit card company charges for processing your payment quickly. Generally, you will request an accelerated payment when you make your payment approximately one or two days before the minimum payment is due. Accelerated payment fees are generally slightly less than late payment fees.
If you want to avoid an accelerated payment, be sure to make your credit card payment at least five business days before the due date.
Credit card companies make money by charging many fees. However, most of these costs can be avoided:
All ittakes is a few good credit card decisions to save a lot of money down the road.
Savings are here:
