Credit card Issuers advertise promotional rates to attract potential cardholders.
If you’re looking for a new credit card, watch out for the fees! Despite the low interest, your credit card may be getting back at you through the extra fees.
How can you avoid paying more than what you owe? Check out these tips:
Pay your bill ahead of time.
Don’t wait until your due date nears before making payment. Pay off your charges as soon as you have the cash to do it. The New Law requires all credit card Issuers to provide at least 21 days of grace period and it is an important provision that cardholders must take advantage of. Why pay late fees when you can avoid them by paying on time?
Sign up for automatic payment.
If you are prone to forgetting your due dates, the best thing to do is to schedule an automatic payment system through your bank. This strategy is also ideal for people who own multiple credit cards or who are managing different types of credit such as car loans, personal loans, and mortgage. Utility bills can be set up for automatic bank payment to avoid late penalty charges.
Set aside your cash for credit card payment.
The moment you receive your pay check, set aside the portion for your credit card bills and submit your payment right away. Pay off your entire balance to avoid the additional interest rate and late fees.
Request for waive.
In case of emergency and you cannot make your payment on time, call your credit card company right away and request your Issuer to waive the late fee if you can make your next payment on time. If your records show that you have been a reliable customer, you should be confident about making a reasonable demand such as this.
Don’t go over the limit.
Obviously, exceeding your limit will cost you extra dollars on your bill. Regularly check your account to ensure that all charges are correct. Before charging a large purchase, see to it that you have sufficient credit left. Pay off your monthly balance in full to free up your account. Last but not the least, keep your credit card spending minimal.
Don’t borrow cash from your card.
Many credit cards today offer the cash advance feature. This gives a cardholder the option to borrow from his/her account by withdrawing funds from the ATM. Although it may seem like a wonderful provision, especially when you need cash for an emergency, these transactions are charged with incredibly high interest rates. And since cash advances are not covered by the grace period, you automatically incur the extra APR charge each time you make a withdrawal.