If you’re thinking about getting a credit card then it’s worth being fully aware of the terms and conditions. While it might seem like a laborious process to read through the small print, it’s worth doing so if you want to make sure you avoid being stung by unexpected charges. Many products have fees attached to them, but a little planning could help you to avoid them.
An easy – not to mention important – fee to avoid is the kind attached to late payments. If you make at least a minimum payment then you won’t encounter any issues. If you are the forgetful type then ensure you arrange a direct debit to avoid paying more than you need to and harming your credit score.
Cash advance fee
It’s usually best avoiding withdrawing cash from an ATM using your credit card whenever possible, simply because most lenders charge a fee for doing so. Instead, pay using your car or use a debit card to get cash.
Not all credit card applications have a fee attached to them; in fact there are hundreds that don’t, so simply consider making a credit card application for the right card. If you’re keen on a particular card that charges an application fee then it’s worth knowing that it’s typically to cover administration costs and – as such – is a one-off payment.
If you stay within you credit limit then you’ll never need to contend with this fee. Of course, going over the pre-agreed amount can be easily done if you don’t keep a close check on your outgoings, so double check before using your plastic if you’re unsure.
Balance transfer fee
People with existing debts can find balance transfer credit cards extremely useful, these are well worth finding out more about as they provide a 0 per cent interest rate for a pre-defined period. This means they can pay down their balance without having to contend with additional charges, although sometimes though a fee is charged by lenders to process the transfer. Whether you feel this is worth paying will depend on your circumstances, but it’s always worth comparing credit cards as some will do this for free.
If you’re keen to take advantage of the special offers and benefits offered by some cards then this might be a fee worth paying. The good news is most standard products will not charge it, so it’s easy to avoid.
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