Fees, Fines, and Interest- What to look out for on Your Next Credit Card

In this blog I am going to show you what fees to avoid and how to find them.

So you have that offer in your hand- everything looks to be good but wait before you sign up for this "amazing deal of a card" turn the page over! Hidden in a lot of words usually on the back (sometimes on the next page) is what you REALLY need to know about this card. So here is what you are looking for...


Annual Fee: Annual fees can range from $20 to about $125 per year. Personally I would never take an annual fee card because there are too many cards out there without them! If you do take this card please be advised that this is an ANNUAL fee so it will be CHARGED to your card every year. This means that if you don't pay this right away you will also be charged interest on this amount.

Interest Rate: Depending on your credit score this will vary considerably. Sometimes the interest rate will be really high but do you want to know a secret? If you keep a zero balance on your card- IT DOESN'T MATTER how high the rate is!!!! If you don't have a balance to pay interest on- you don't pay interest! Now, if you plan on keeping a balance on this card (which I DO NOT recommend- click here for how to payoff those cards) then look for a card with the lowest interest rate. If this card is simply to earn rewards (next blog) or to help with your credit then it does not matter.

Late Fees: Late fees are usually $15-$39. I have seen some late fees as high as $70! You do not want to pay your card late! Credit card companies are not "generous companies" and will not usually be willing to waive these fees. Payments on credit cards are usually DUE BY NOON ON THE DUE DATE and it doesn't matter if your payment is post marked or payment was made online later that evening.  If you are late- you will pay this hefty fine. Do yourself a favor and set up automatic payments if you choose to keep a balance on your card.

The secret rate hike: Did you know that even if you make all of your payments on time your credit card company can raise your rate if you are late paying ANOTHER lender? This is a fact, actually about 40% of companies do this- so pay everyone on time!

The NO balance fee: Make sure that your card DOES NOT have this fee! Some cards will actually charge you about $2/month if you choose to keep a zero balance on your card! So watch out for these ones and keep searching for a better deal.

Cash advance fees: If you go to the bank and ask for cash off of your card- there is a fee. If you have to use your card- it's always better to swipe.

As you can see the world of credit cards is full of sharks and bandits! It's no wonder these companies have billions of dollars! Do yourself a favor- read your statements and keep those balances at zero you will save yourself a lot of money!