No one wants to spend money on credit card fees. If you don't know about the various fees that could affect your account—and what might trigger them—you could wind up paying much more than you bargained for. Fortunately, you can minimize fees and interest charges with just a little easy effort.
A credit card is a loan, and loans are typically repaid with interest. So it makes sense that the lower your balance, the less interest you’ll pay. If your card offers a grace period, you can avoid paying interest altogether on purchases by paying your account in full each month. Keep in mind, though, that purchases are generally the only types of transactions that qualify for a grace period. Balance transfers and cash advances start accruing interest from the day the transaction is made.
Regardless of the types of transactions you make, try to pay more than the total minimum payment if you can't pay your balance in full each month. This will help reduce your interest costs.
There's one simple rule for avoiding late-payment fees: Pay on time. Here are some other helpful tips:
Credit card transaction fees are usually based on the type and amount of the transaction. You may not be able to avoid them completely, but if you understand how they work, you can often make them more manageable. Here are some common transactions that can trigger fees:
With a little effort, you can greatly reduce your credit card fees. Different credit card issuers have different rules, so make sure to check your credit card agreement, visit your card issuer online or call customer service if you have questions. Also, keep watch for notices from your credit card issuer about changes to fees. Knowing more might just save you more.