Credit cards can be great if used responsibly. However, many people use credit cards recklessly without a care. If not careful, you may end up with unexpected credit card fees.

Here is a list of credit card fees to avoid:

  1. Late Payment Fees

You should never be in a situation where are charged a late payment fee on your credit card. First and foremost, your credit score will take a hit if you miss a payment. Pay the full amount whenever possible, if you are not able, then pay the minimum. Set-up an automatic payment from your bank account so you never miss a payment. This is a quick and easy way to ensure you are on top of your payments.

  1. Overlimit Fees

Always keep track of your credit card spending. Going over your credit limit will lead to over limit fees. Going over limit on your credit card will have an effect on your credit score as well. If you go over your credit limit it will show up on your credit report. If you find yourself nearing your credit limit, the best course of action is to stop using your credit card and start to pay off the balance.

 

  1. Cash Advance Fees

You should never withdraw cash from your credit card. Whenever you withdraw cash from your credit card, you will be charged a cash advance fee. It can be a minimum flat rate or a percentage of the cash withdrawal from the credit card.

That’s not all, there can be additional fees on top of the cash advance fee. You may be charged an ATM fee, the fee depends on the ATM you are using.

Additionally, you will pay a higher interest charge on your cash withdrawal than your regular credit card charges. Plus there is no grace period, so you are paying interest as soon as you make a cash withdrawal.

  1. Foreign Transaction Fees

Many people don’t realize that they are charged a foreign transaction fee every time the use their credit cards outside of the country. These fees can add up for those making regular shopping trips across the border.

  1. Balance Transfer Fees

You may be enticed by a 0% balance transfer offer and think it is a great offer to reduce your interest charges, think again. While you may get an interest-free period to make some saving the offer is probably not without a catch. There are usually balance transfer fees attached to such offers. These fees vary but can range from 1% to 3% depending on the credit card. So let’s say you transfer $5,000, you will pay anywhere from $50 to $150 in balance transfer fees right away.

Keep in mind that there are always fees attached. Before using your credit card, fully understand the fees. Avoid late payment fees by setting up reminders. Set-up a reminder on your credit card, so every month when your payment due date gets close you receive a notification. The same goes for going over limit. Set-up notifications when you get close to your credit limit. By using your credit card responsibly these fees can be avoided and should be avoided at all times.