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Watch out for hidden credit card fees
By Adam | March 21, 2007
Watch out for hidden credit card fees.
Federal law dictates that credit cards can’t hide fees from customers.
But does that mean you’re not paying any fees you don’t know about?
You could be missing the fine print — and the many fees that come with everyday transactions (or blunders).
In fact, Americans pay about $31 billion in credit-card fees each year.
Banks charge as much as $39 (on top of finance charges) if your payment doesn’t arrive on time.
If you’re prone to forgetting, schedule automatic payments through your bank.
If it’s only happened once or twice, talk to your creditor.
Many cards will advertise low APRs on balance transfers to entice customers, but the transfer fee could negate the advantages.
The good news is that some cards don’t have them — Capital One, for example, has no balance-transfer fees on most cards.
Use your credit card to get cash from an ATM, and you’re actually taking out a loan — probably with a very high interest rate.
But you may also have to pay a transaction fee both to your credit-card company and to the bank that owns the ATM you use.
All in all, it’s not worth it.
Exceed the limit on your credit card and you may have to fork over another $39.
Wait — doesn’t that undermine the point of a credit limit?
Perhaps, but some companies will OK the over-charge as a “convenience” for you.
(But wouldn’t it be more convenient if they just raised your credit limit?)
You may want to explicitly let your credit-card company know not to let you charge more than your limit.
If you use your card abroad, you’re going to have to pay a hefty fee — typically around 3 percent of your purchase — so stick with traveler’s checks.
If you must use a card, look for one with no fee or low rate before you travel.
MANAGING YOUR MONEY (Contra Costa Times)
Credit WATCH OUT FOR HIDDEN CREDIT-CARD FEES: Federal law dictates that credit cards can’t hide fees from customers. But does that mean you’re not paying any fees you don’t know about? Not necessarily. You could be missing the fine print — and the many fees that come with everyday transactions (or blunders).
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Topics: Credit Cards, Personal Finance |