Know the Fees Associated with your Credit Card
A credit card company is not going to let you borrow money for free. While they may do so at first, which is known as an introductory zero percent rate, this will not last forever. To go along with finance charges there are many other fees you may face. It is very important to know the fees associated with any credit cards that you have in your wallet. To go along with this, if you are applying for a new card you want to consider these fees before you submit your completed application.
Everybody knows that credit cards are associated with interest. For instance, your credit card may have an APR of 10 percent. If you carry over a balance you are going to face a finance charge which will be added to the money you already owe.
Does your credit card have an annual fee? This is a fee that you pay every year for the ability to use your credit card. Most experts agree that you should stay away from credit cards that have an annual fee. One exception is if you have access to a high quality rewards program. In other words, there is nothing wrong with paying a fee if you are receiving a lot in return.
Don’t forget about overdraft or over-limit fees. You need to know the limit of your credit card, and how much you will be charged if you exceed this amount.
Every credit card is going to have certain fees attached to it. As a consumer it is your job to know what fees you could face, when they come about, and how to avoid them.
December 3rd, 2008 at 8:56 am
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