Do you know the costs associated with your credit card? Do your really know? Many people assume they do but aren't aware of the hidden fees that many credit card companies are charging you month after month. In fact, if you don't keep a close eye on your credit card, you may end up paying hundreds of extra dollars per year-without ever knowing it! And if you're trying to budget your money, those hidden fees can add up!
Let's take a look at some of the most common credit card fees, and then talk about how you can avoid them.
Late Fees
This is the one that likely gets most people and it's a compounding charge so it affects several other factors of the total amount of your credit fees. When is the last time you checked to see what amount your credit card company charges you for a late fee? The truth is that these fees have doubled in just the past ten years, and that, combined with the reduced grace period which I will discuss shortly, means that the credit card companies are raking in a lot of dough on late fees!
If it's possible, you should try and send off the check (or electronic transfer) the day that you receive your credit card bill each and every month. There are three reasons why it's important never to be late and these are critical to abide by to maintain a good credit score and lower fees. The first is obvious; you will want to do everything in your power to avoid a hefty late fee. Next, if you are late, it will likely be reported to the credit agency and you will have a bad mark on your credit report which will mean it will be difficult to retain low interest rate cards until you are able to repair your credit. The third is the interest, and we'll discuss it below.
Interest Rate Hikes
Did you know that if you are late even once on your credit card payment, the company will in all likelihood raise your interest rates to astronomical levels! That's right; one late payment gives them the right to do it and most times it's written in tiny little letters on the back of your credit agreement. You read that part right? Yeah me too! What's more, that isn't just limited to your credit card payment. Any late payments from any lender that show up on your credit report gives them the justification to raise your rates, so be careful! Sites like http:///www.internetcreditcardlist.com clearly list interest rates and benefits of credit cards in readable text sizes so people like you and I have no surprises when signing up for a new card.
Grace Periods
We could always count on grace periods before we ever had to start paying interest in the good old days. For example, if we charged our card to the limit, and could get it paid off before the grace period expired, and then it would be like a free loan with no interest.
The credit card companies are making this harder and harder to do and many of them have reduced the traditional 30 day grace period to 20-25 days or eliminating it all together. That means you are instantly paying interest any any charge you make right after you make it.
How about your credit card? You need to take a close look at the fine print and find out what kind of grace period you have. If your credit card company has reduced it significantly, or eliminated it altogether, you should seriously consider canceling it and getting a more user-friendly card. Also remember the credit card companies need you to profit. Ever tried canceling a card? They don't like that very much because you bring in profit so if you don't like your interest rate, or your annual fee, or your grace period, call them up and tell them your switching. Chances are they will be very willing to listen!
Jason Jell is the editor and webmaster of http://www.internetcreditcardlist.com A site geared towards providing people with clear concise information about credit cards and credit card offers.
|
|
|
|
|
|
|
|
|
|
|


So you ordered a copy of your credit report to... Read More
Millions of Americans suffer because of bad credit these days,... Read More
So-called "credit repair" companies claim they can remove negative information... Read More
When you apply for credit, those lending you the money... Read More
You've probably never heard of Frank X. McNamara, but he... Read More
If you're a college student, you probably already have a... Read More
One of the great mysteries of life is how the... Read More
Credit cards have both benefits and drawbacks. It is wise... Read More
In the new millennium plastic money or credit cards has... Read More
It wasn't all that long ago that lenders blatantly discriminated... Read More
A check can be considered bad if it is bogus... Read More
About Search Entries:Every time a lender checks your credit history... Read More
You got creditors calling you everyday. You could lose the... Read More
Credit Cards and Loans sounds like just two things, but... Read More
Your credit score can either haunt you or reward you.... Read More
In the twenty-first century, there are few documents that have... Read More
Do you have a poor credit rating? If so, you... Read More
There are so many credit cards out there to choose... Read More
Do you know the costs associated with your credit card?... Read More
With all my bills who would possibly want my credit?... Read More
A bad credit history can sometimes seem like a curse...... Read More
Because most of us have one or two credit cards... Read More
I AM THE CONSUMER. AND I HAVE LOW-RATE SUPER-POWERS!Note: The... Read More
To repair your bad credit does not necessarily mean that... Read More
Credit Cards can bankrupt you if you let them run... Read More
On one hand consumers are being universally criticised for running... Read More
Lenders are quite fussy about what they like to see... Read More
Do you know what your credit card is truly costing... Read More
Clean Credit Reports, your credit report contains information about where... Read More
The three major credit bureaus, Experian, Equifax and Trans Union... Read More
A credit report is run on a buyer when he... Read More
Most of us want a good credit report to obtain... Read More
Your credit rating / credit score is based upon how... Read More


Check 21 is the common name for the Check Clearing... Read More
Maybe some of you are saving it in your trusty... Read More
What is a balance transfer ? A balance transfer can... Read More
They arrive in your mail - a conspicuous looking mail... Read More
It may seem like a simple question but its important... Read More
I remember back when I was 18 and completely oblivious... Read More
Creditors will measure your credit rating based on the following... Read More
As of Thursday, December 1, 2004, one-third of Americans will... Read More
The Federal Fair Credit Reporting Act (FCRA) is designated to... Read More
Ok, let's face it, everybody hates high credit card rates,... Read More
You've probably heard the term credit scoring. You may have... Read More
We have all heard the rumors?from neighbors, relatives or friends.... Read More
Many of us have seen the advertisements on television. "Get... Read More
With all my bills who would possibly want my credit?... Read More
Building a good credit history is important. If you have... Read More
Many credit card holders sign up for a credit account... Read More
Credit cards are a form of unsecured credit. The issuer... Read More
A consumer credit report is a factual record of an... Read More
Article excerpted from the new book, "How to Do Space... Read More
It is the scourge of our age: identity theft. Thieves... Read More
You can still save money on a Bad Credit Loan... Read More
Have you ever looked at your credit card statement and... Read More
What Is Your Credit Rating Now?If you have any charge... Read More
The nightmare of identity theft strikes an estimated 750,000 people... Read More
About Search Entries:Every time a lender checks your credit history... Read More
Spending HabitsSo you've just got your credit card. The first... Read More
Negotiable instruments like checks and drafts have become an indispensable... Read More
Have your read your credit card contract through completely? Do... Read More
Whether you are aware of it or not, credit bureaus... Read More
There's only one way to discover the "health" of your... Read More
You probably don't need me to tell you credit cards... Read More
A credit card allows you to buy things even though... Read More
When you are deciding what type of credit card to... Read More
Credit |