What You Need to Know About Credit Card Fees

Credit cards are useful for managing your money, but it's important to know the fees that come with them so you don't get hit with any surprises. Here is a list of common credit card fees and how to handle them well.

1.-Annual Fees: A lot of credit cards charge a fee every year to be a member. Annual fees are usually higher for premium cards that come with a lot of perks and benefits. Check to see if the benefits are worth the money. For instance, if the perks and rewards are greater than the fee, you might want to keep the card.

2.-Interest Rates (APR): The interest rate on sums that haven't been paid off is called the Annual Percentage Rate (APR). If you pay off your amount in full every month, you won't have to pay interest. But if you have a balance, you need to know your card's APR to keep your interest costs down. Some credit cards offer introductory periods with no interest on purchases or debt transfers. This can help you budget for big purchases.

3.-Late payment fees: You may have to pay if you don't make the minimum payment by the due date. These fees are usually between $25 and $40. You can escape these fees and keep your credit score high by always paying on time. Setting up automatic payments or notes can help you make sure you pay your bills on time.

4.-Balance Transfer Fees: Moving a balance from one credit card to another generally costs something, usually between 3% and 5% of the amount being moved. Balance transfer deals with low or no introductory rates can save you money on interest, but you should also look at the transfer fee to see if it's a good deal.

5.-Cash Advance Fees: If you use a credit card to get cash, you may have to pay high fees and interest rates. The fee can be a flat amount or a portion of the advance amount, whichever is greater. Also, interest on cash advances starts to build up right away, with no grace time. Cash loans should not be taken out unless they are really needed.

6.-Foreign purchase Fees: When you use your card abroad, you'll have to pay these fees, which are usually 1% to 3% of each purchase. If you travel a lot, you might want to get a credit card that doesn't charge fees for using it in other countries.

By knowing about these common credit card fees, you can make smart choices, avoid charges you don't need, and get the most out of your credit card.