Fees are part and parcel of most financial services but have you paid attention to your credit card fees lately? Understanding your credit card fees could save you money or suggest it's time to try a different credit card altogether.
There are many types of credit card fees but the main one is the interest charged on the debt accrued. Most cards have a period of time where you won't be charged with interest if you pay the balance off during that time. This interest-free period is generally about 45 days but range from 25 to 60 days. Some credit cards have extended promotional interest-free periods of three or six months. If you leave money outstanding on your card after that period, you will be charged with interest.
Credit card fees vary depending on the type of credit card. Low fee credit cards might also come with lower interest rates but less rewards. For platinum and gold credit cards you will pay higher interest rates and fees but receive more rewards. It comes down to your personal spending habits and acknowledging what matters and works best for you.
Regardless of the credit card, there are a number of spending habits that automatically incur extra fees;
- cash advances
- default on late payments
- annual or monthly service fees
Fees for service are unavoidable but you can keep your credit card fees down by spending and paying off debt wisely.
Want to compare your credit card fees to see how they fare with over 200 other credit cards? Check out RateCity's credit card comparison tool.