Friday, May 1, 2009

How To Avoid Credit Card Fees

If you have been wondering how to avoid credit card fees, the easiest way is to stop using credit cards. The credit card companies are bound to find some way to charge you a fee for something if you continue to use their service. Also, if you are using credit cards regularly but not paying them off you may not be able to afford what you are buying and then you are getting yourself into a precarious situation.

How To Avoid Credit Card Fees

1. Always pay your credit card bill on time. If you are unable to pay your credit card (minimum) payments on time then most likely you are purchasing more than you can afford and you need to stop purchasing on your credit cards.

2. Do not go over your limit. When you get close to your limit, stop there. You may not realize that you have actually gone over your limit, then you will have an additional over limit fee.

3. Pay off high interest rate cards first. When you are trying to pay down your credit cards, pay off your high interest rate cards first. Transfer the balance to a cheaper rate if you possibly can.

4. Ask what fees are involved before you do transactions that you are not familiar with, such as a cash advance. What is the cash advance fee? Does the interest rate change for a cash advance.?

5. Never apply for a credit card that has a yearly fee. Eventually you will regret that you have the fee, but if you cancel the credit card, it could be a bad mark on your credit.

If you have credit cards then you need to know how to avoid credit card fees.