Are These Five Credit Card Fees Costing You Big?
Credit cards make it easy for you to pay for things you buy every day. They can also help you establish a strong credit history when you consistently make your payments on time. But credit card fees can cost you big if you’re not careful. While it’s always important to read the fine print on your credit card agreement to find out what charges you may be responsible for, here are five common fees to watch out for and how you can avoid them:
Late Fees
Most credit card companies charge customers a late fee if they don’t make their payment on time each month. Typical late fees range from $25-35. But since your credit card payments will be due at the same time each month, late fees can easily be avoided with a little bit of planning. Add the due date to your calendar so you don’t forget to send in your payment. You can also consider setting up an automatic payment for at least the minimum amount due, so you can rest assured your payments will always be submitted on time.
High Interest Charges
If you don’t pay your credit card bill in full each month, you’ll accrue interest charges on the remaining balance. Because interest rates on credit cards tend to be high, these charges can add up quickly. It is considered best practice to pay your bill in full whenever possible. If you can’t pay in full, pay at least the minimum payment or as much as you can over the minimum to reduce the amount of interest you’ll be charged.
Balance Transfer Fees
When you move a balance from one credit card to another, the credit card company you’re moving the balance to may charge you a fee. These fees typically range from 3-5 percent of the amount you transfer with a minimum charge of around $5-$10 per transaction. But some cards allow you to transfer a balance without paying a fee if you meet certain criteria. If you’re considering a balance transfer, it’s worth it to shop around for a card that doesn’t charge a balance transfer fee. If you transfer your balances to a Robins Financial Visa® Platinum Rewards Credit Card, there are no balance transfer fees or annual fees, and you can even enjoy a special promotional rate on balance transfers made during our current limited time offer.
Cash Advance Fees
If you have a credit card, you may be able to use it to borrow cash from an ATM or bank, or your credit card company may send you convenience checks you can cash. But be cautious, because credit card companies typically charge a fee for these cash advances, and the amount you borrow is often charged a higher interest rate than the rate you pay on purchases. In addition, some items you purchase, such as money orders, lottery tickets and casino chips, are often considered to be cash advances and are subject to cash advance fees and APRs.
Returned Payment Fees
If your payment can’t be applied to your account, you could be charged a returned payment fee. This typically happens because there isn’t enough money in your bank account to pay your bill. To avoid this charge, always be sure to check your account balance before sending payment to your credit card company to ensure you have enough money to cover the cost of your payment. You can access your Robins Financial accounts anytime, anywhere with our convenient Digital Banking to verify your balances before submitting payments.
At Robins Financial Credit Union, you can choose from a variety of credit cards to meet your unique needs. Whether you’re applying for your first card to help establish a strong credit history, or you’re looking for a card with greater purchasing power, we have one that’s right for you.
To learn more about our different credit options, give us a call or stop by any of our branch locations. Not a member? We can help you change that. Open an account today to start enjoying the benefits Robins Financial Credit Union has to offer.