Credit Card Fees That Waste Your Money

The Top Ten Credit Card Fees that Waste Your Money

If you have a credit card, it is important you know about all of the possible fees. If you’re getting charged unnecessary fees, this can add up to hundreds of dollars each year. The average person doesn’t have this money to waste. This article will go over the top ten credit card fees that waste your money.

Learn how to Avoid Credit Card Fees

1. Subscriptions You Don’t Use

When was the last time you looked at your credit card bill? If you can’t remember, it’s time to start doing so. With so many apps and subscriptions available today, it’s easy to sign up and forget it. This is how you get small charges to your bill each month, and they can add up. A $3.99 fee every month is almost $50 a year. Now double or triple it you’re spending $100 to $150 a year that could be going to other things. It’s a good idea to check your bill and cancel subscriptions you’re not using.

2. Credit Card Fees on ATMs

ATMs may be convenient, but their fees can range up to over $4.00 per transaction! This can add up to a huge total over the span of a year, or even a month. Your bank branch’s ATM will usually waive this fee. Thus, if you bank online, your bank may refund your ATM fees each month, and this can save you money. However, if there isn’t one around and you need cash, this can be a problem. You should try a store or supermarket. A lot of these stores will give you $100 to $200 cash back with no fee attached. It never hurts to ask, the worst they can do is say no.

3. Checking Account Fees

Many banks will charge you a monthly fee if you don’t have a set amount or above in your checking. Thus you can avoid this by researching banks that don’t do this and switching. GoBankingRates.com has a list of 13 checking accounts that don’t require a minimum balance.

4. Credit Card Fees and Late Payment Charges

If you pay your bill even a day late, you could get a late fee added on. This happens every time you’re late, and you can damage your credit score. Your late or missed payments will show up in your payment history, and this can lower your score. It also makes you seem less reliable to lenders if you’re trying to get a loan or a line of credit. Furthermore, it can also make your interest rate go up because you’re a higher-risk customer. It is a good idea to pay more than the minimum payment as well. However, if you can’t pay more, make sure it’s on time and avoid credit card fees.

5. Overdraft Fees

Every time you overdraft your account, you could be adding over $30 in fees. You can get overdraft without knowing it, and this means you’ll usually get a few fees at once. At $30 a fee, this adds up very, very, fast. Also, to stop this from happening, tell your bank you don’t want to be able to overdraft your account. If you try to buy something and don’t have the money in your account, the bank won’t let the transaction go through. This will save you many additional costs each year.

6. Money Transfer Fees

Each time you send money, it can be costing you in fees. This includes overseas and domestic transactions. There are ways around this, and a popular one is Paypal. You can send money from one Paypal to another with no additional cost. Walmart is offering reduced fees by their Walmart to Walmart system. You can send money from one store to the other with a lower fee than a wire transfer. If you have a Smartphone, apps like Google Wallet, Facebook Messenger, or Square Cash won’t cost you anything. Also, if you’re sending money internationally, there are apps for reduced fees. If you use apps like WorldRemit, CurrencyFair, and TransferWise, you’ll pay less than a 1 percent tax.

7. Partial Payment Fees

If a company splits your bill into portions, they might add a fee for doing this. You can avoid this by checking your bill’s fine print. This will tell you if you’re paying extra for this process or not. If you’re able to pay your bill all at once, do it and avoid the extra fees.

8. Cash Advance Fee

If you use your credit card as a debit card to get cash, you’ll get fees added on. Your credit card company will add interest as well. This interest rate is usually around 20 percent or higher, and this adds up. Thus, a typical cash advance fee is up to 4 percent or $10 each time you do it. Finally, your credit card lender will take whichever one is higher out of the two.

9. Convenience Charges

Have you ever gone to a store and been told you had to buy a certain amount to avoid a fee? This fee is a convenience charge for using your card on a small amount. Don’t pay this fee as it is higher than any possible rewards your card will give you in return.

10. Shipping Fees

Online shopping venues like Amazon charge shipping fees for each order. It is possible to avoid this by buying an Amazon Prime membership. Furthermore, you can lower this cost by splitting the membership with friends or family. There are also many coupons or codes you can apply to get a reduced rate.

This article has gone over the top ten credit card fees that waste your money. We’ve also talked about how to avoid them, and how much they can save you. Lastly, you can take this money and use it in other places like a savings account. It is a good idea to look over your bill just in case you’re getting charged.

Monica Kowollik

Director at CreditFast.com
Monica has covered credit card and personal finance news for over 15 years. From an early age, she developed an interest in financial literacy and saving money. Monica hopes to help others to improve their personal finances one article at a time.

LEARN MORE:

Cash Back Credit Cards

Best
Credit Card Applications!