When you sign up for a credit card, make sure to read the fine print. You may be agreeing to fees that might bite you in the butt if you’re not aware of them. Here’s a quick list of hidden credit card fees you should be on the look out for:
- Credit limit fee. When you ask to raise your credit limit on your card, come cards charge you as much as 50% to make the bump. While having more available credit is good for your credit score, the fee might not make it worth it.
- Residual interest. This happens when you’re paying down debt over time and you’re paying off a whole balance. If you carried some balance the previous month, the following month credit card still assess interest on the balance from the previous amont. It’s a pretty sneaky interest calculation system. Keep your eyes open for it.
- Foreign transactions. Credit cards can definitely make foreign travel easy because most major credit cards are accepted everywhere. But be careful, some companies will charge you extra for transactions in foreign countries.
What you can do to avoid these fees
If you have a card that charges you these sneaky fees, you’re not stuck with them. Congress has recently done investigations into hidden fees and are cracking down on companies using them. If you believe you’re being charged hidden fees, call up your credit card company and threaten to report the company. If that doesn’t make them change their tune, just tell them you’ll take your business else where if the fees stay.
It is true that almost all Credit Cards actually have hidden fees in the fine print, particularly Late Fees. When you are choosing a Credit card, it is always smart to compare Credit Card Offers to find one with minimal hidden charges and a low APR.