By law, credit card fees must not be hidden by credit companies from their customers. However, this does not mean that all cardholders are completely aware how they are actually charged or which cases will result in additional charges or increased credit card fees.
Oftentimes, some fees are only indicated in the cards’ terms and condition or in the account disclosure statement cardholders will receive once they open their account. This is one of the many reasons why cardholders overlook such information; this is where the term “hidden charges” came to be.
The most effective way to avoid having to pay high fees is by consistently paying your bills on time. Each year, credit card companies are raking billions of dollars in penalty fees! So save money by paying any balances when it is due to avoid penalty charges.
So how do you avoid paying high credit fees that comes with using your card? The best defense is by educating yourself. Below are some of the most common “hidden” charges that companies make customers pay:
Tip 1: Know that these days, credit card companies are now recording receipts of payments received in envelopes apart from the pre-printed envelopes five days after they receive them. So always read the card member agreement. Some card companies allow postmarked payments by the due date, but a large majority of companies require all payments to be paid before noon on the day the bill is due. In addition to strict payment rules, some credit card companies have shortened their billing periods from the traditional 30 days to 20 days.
Tip 2: Be aware that if the late fees made you exceed your credit limit, you will be charged with over-the-limit fee, which may increase interest rate for up to 24%. For this reason, make sure you also keep track of how much credit is available for you to use.
Tip 3: If you are late on paying off any of your creditors, a lender could increase the interest rate that you will pay. So basically, even if you are consistently paying your bills on time, you will still pay additional charges if you are late on making payments with one of your other lenders.
Tip 4: There are also some company that will charge fees for having cards without balances on them.