Credit cards comes with an assortment of fees that you may or may not have to pay depending on how you use your card Let’s take a look at these common credit card fees and how they can be avoided.Common Credit Card Fees

Cash Advance Fees

A cash advance is an amount that some credit cards allow customers to take or an amount of money in cash that is added to their credit card balance. Cash advances come with a separate, higher interest rate than the standard rate for purchases. You also get charged interest from the day of the advance because cash advance does not make room for a grace period. This fee also includes a fee that varies by card but generally works out to around 5% of the cash advance amount.

How to Avoid It

You can avoid this fee and other charges associated with it by keeping money in savings you can access in an emergency, and avoid using your credit card to get cash at an ATM.

Over-the-limit Fee

This is the fee you get charged with when you exceed the maximum balance you are assigned when you get approved for a credit card. The good thing is, you can decide to or not to opt-in for this fee. This means if you do not agree to it, you won’t get charged. Some credit cards do not charge this fee at all, while those who charge can charge up to $28 if you haven’t gone over your limit in the previous six months and up to $39 if you have.

How To Avoid It

You can refuse to opt-in. If you do not agree to this fee, charges that would put your card over the limit will be declined. You can also avoid it by monitoring your credit card balance or by not carrying a balance at all.

Balance Transfer Fees

These are fees that accrue as a result of some credit cards allowing their cardholders to transfer a balance from another credit card account. Some credit cards may even grant consumers low or no interest for a limited time on such balances. This can help you save on interest by consolidating high-interest debt into a single, low or no-interest account.

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Returned Payment Fee

This fee may come if the payment you make on your credit card is not authentic for any reason. Many credit cards will not charge a returned payment fee for a bounced check if you still make your payment before your due date. These fees are subject to the CARD Act rules: they can be no more than $28 if there have been no returned payments in the previous six months and no more.

Common Credit Card Fees | Late Payment Fees

Late payment fee is charged any time you make a payment after your credit card’s due date. This fee is capped by law at two different levels, $28 and $39.

How To Avoid It

You can avoid this fee by paying your credit card bill early or on time each month. Note, if your credit card payment is more than 60 days late, your card issuer can enact a penalty APR which is higher than your credit card’s ongoing interest rate. If it gets to this point, you’ll have late fees and accumulating interest charges to deal with.

Finance Charges

Finance charges vary depending on your credit cards interest rate and the amount of the balance you carry from one month to the next after your grace period. This charge also varies depending on how your bank calculates interest charges. Finance charges can become high over time when you have debt.

How To Avoid It

Pay your balance in full every month.

Foreign Transaction Fees

These are fees charged by some credit cards when you use your card to make a purchase outside the United States.

How To Avoid It

You can avoid this fee if you do not leave your home country. You can also avoid it by using a credit card that does not charge a foreign transaction fee.

Annual Fee

This is a fee charged by some card issuers just for carrying their card. Most credit cards don’t charge an annual fee, while the cards with the highest annual fees tend to offer the most benefits and perks.

How To Avoid It

There are many credit cards/rewards credit cards that don’t charge an annual fee opt for one.