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Credit Card Expenses Are Killing Your Budget!
Do you know the costs associated with your credit card? Do
your really know? Many people assume they do but aren't aware of
the hidden fees that many credit card companies are charging you
month after month. In fact, if you don't keep a close eye on your
credit card, you may end up paying hundreds of extra dollars per
year-without ever knowing it! And if you're trying to budget your
money, those hidden fees can add up!
Let's take a look at some of the most common credit card fees,
and then talk about how you can avoid them.
Late Fees
This is the one that likely gets most people and it's a
compounding charge so it affects several other factors of the
total amount of your credit fees. When is the last time you
checked to see what amount your credit card company charges you
for a late fee? The truth is that these fees have doubled in just
the past ten years, and that, combined with the reduced grace
period which I will discuss shortly, means that the credit card
companies are raking in a lot of dough on late fees!
If it's possible, you should try and send off the check (or
electronic transfer) the day that you receive your credit card
bill each and every month. There are three reasons why it's
important never to be late and these are critical to abide by to
maintain a good credit score and lower fees. The first is
obvious; you will want to do everything in your power to avoid a
hefty late fee. Next, if you are late, it will likely be reported
to the credit agency and you will have a bad mark on your credit
report which will mean it will be difficult to retain low
interest rate cards until you are able to repair your credit. The
third is the interest, and we'll discuss it below.
Interest Rate Hikes
Did you know that if you are late even once on your credit
card payment, the company will in all likelihood raise your
interest rates to astronomical levels! That's right; one late
payment gives them the right to do it and most times it's written
in tiny little letters on the back of your credit agreement. You
read that part right? Yeah me too! What's more, that isn't just
limited to your credit card payment. Any late payments from any
lender that show up on your credit report gives them the
justification to raise your rates, so be careful! Sites like
http:///www.internetcreditcardlist.com clearly list interest
rates and benefits of credit cards in readable text sizes so
people like you and I have no surprises when signing up for a new
card.
Grace Periods
We could always count on grace periods before we ever had to
start paying interest in the good old days. For example, if we
charged our card to the limit, and could get it paid off before
the grace period expired, and then it would be like a free loan
with no interest.
The credit card companies are making this harder and harder to
do and many of them have reduced the traditional 30 day grace
period to 20-25 days or eliminating it all together. That means
you are instantly paying interest any any charge you make right
after you make it.
How about your credit card? You need to take a close look at
the fine print and find out what kind of grace period you have.
If your credit card company has reduced it significantly, or
eliminated it altogether, you should seriously consider canceling
it and getting a more user-friendly card. Also remember the
credit card companies need you to profit. Ever tried canceling a
card? They don't like that very much because you bring in profit
so if you don't like your interest rate, or your annual fee, or
your grace period, call them up and tell them your switching.
Chances are they will be very willing to listen!
Jason Jell is the editor and webmaster of http://www.internetcreditcardlist.com
A site geared towards providing people with clear concise
information about credit cards and credit card offers.
MORE RESOURCES:
MORE COLLEGE CREDITChicago Sun-Times, United States - 11 hours agoDespite the current nationwide credit crunch, the State of Illinois secured $100 million for the student loans by tapping a new source -- credit unions. ... |
Credit repair is a DIY projectBaltimore Sun, United States - 4 minutes agoBy Gail MarksJarvis | chicago tribune Mike Ferrara wants to buy a house in a few months and is worried that mistakes on his credit report will keep him from ... |
Ask, and you might receive a lower credit-card rateSeattle Times, United States - 21 minutes agoPick up the phone, look at the latest credit-card offers and keep repeating this: The bank needs me more than I need it. By Susan Tompor Pick up the phone, ... |
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