How To Avoid Credit Card Fees
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Posted On :
Nov-09-2011
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Article Word Count :
599
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There are few credit card holders who have escaped the sting of unexpected credit card charges. Some people think that prices are too stiff, others feel some of the fines are simply dishonest
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There are few credit card holders who have escaped the sting of unexpected credit card charges. Some people think that prices are too stiff, others feel some of the fines are simply dishonest.
Make no mistake about it, banks and card companies generating substantial revenue from these charges. In the past year, the Reserve Bank of Australia indicated that the bank's income from the credit card fees increased 12 percent over the previous year, and 170 percent from five years ago.
More significantly, credit card charges generated from common occurrences such as exceeding the credit limit, making late payments, and paying for transactions in foreign currency rose fastest in 2007 to 16 percent growth.
It's well within your control than to avoid fees and other surcharges on your credit card. There are major differences in compensation between the providers and the types of map features, so it pays to compare credit cards and the card that gives you the best advantage. Here are the possible steps to avoid or at least minimizing the credit card charges.
Be quick in making payments. You slugged late payment charges even for just one day late, and the cost can range from $ 10 to $ 40 (average about $ 25 - $ 30). Make sure you at least the minimum amount to pay not a penny less, or you may impose fees or lose the privilege of interest free period. To ensure you avoid being late, you can arrange for automatic debits made from your bank account.
Reduce the number of additional tickets required. Few people have heard of the card fees. These are costs for each additional card you provide. If youcompare credit cards, you'll find cards that only costs $ 15, but others as high as $ 65 per year. The fee is more likely to be charged if your credit is linked to a rewards program.
Check your annual fee. Cards with rewards programs often have higher annual expenses than regular cards. Also some credit cards do not charge card fees later, but the annual fee for primary card holder may be higher than normal. In some other cards, the annual fee waived, but the trade-off is that you will have more to spend on the card.
Consider using only one or two cards. This helps you keep track of your payment due dates and balances. You will also no longer than necessary, the annual cost to pay.
Minimize the use of your credit card for cash advances. Cash advances will attract interest immediately on the day that you do, even if your card has a 55-day interest free period (this applies only to purchases) possible. In addition, the bank levies a transaction fee for each cash advance.
Avoid going over your credit limit. Limit on costs (usually $ 35) shall apply once you exceed your credit limit. You can avoid going over your limit by checking your balance regularly. There are many electronic ways of doing this: via ATMs, phone banking, or online. If you frequently struggle with your credit, it may be advisable to review your circumstances and if you need to ask for a higher cap on - assuming you have the capacity to pay.
When you compare credit cards, it is important to a favorable interest rate (APR). However, it is equally important for you to have a thorough understanding of fees andother bank charges you may have to pay. This is essential to finding ways to avoid paying too much in credit card charges.
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Article Source :
http://www.articleseen.com/Article_How To Avoid Credit Card Fees_102004.aspx
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Author Resource :
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Keywords :
card, credit ,
Category :
Finance
:
Credit
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