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Credit card fees can lock you into a spiral of debt – but, if used wisely, they don’t have to. Learning to use your credit card so that it works for you and not against you is essential for financial freedom.
Here are a few of the best way to avoid credit card fees.
If you buy something in foreign currency or withdraw from an ATM in a foreign country, the banks will charge your card for service fees, plus you are likely to lose money in the currency conversion.
It pays to know exactly the percentage of the transaction amount so that you can either choose a different ATM or use another card when paying for purchases overseas.
Sometimes you are charged when you exceed your credit limit, but some cards do allow you to opt-in to having over-the-limit transactions—they don’t do it automatically without your permission.
Use credit cards that allow this policy. It makes being in control of your finances easier and more manageable. Just remember that if you do opt out, then your credit card won’t be valid for transactions that exceed your limit.
Most credit cards will have late fees, and you can inquire about then when signing up for a new account. Every month that you are late in paying back credit, those charges may rise.
If you don’t want those unexpected charges, it’s wise to stay on top of spending and pay back all your dues before the deadline. Paying your credit card payments on time and never being late is the safest way to avoid this fee.
Something to remember is that a good credit score can lead to credit cards with much better fees and terms. Check your credit report and take advantage of the best credit cards for your credit score. Don’t pay high fees if you don’t have to.
There are many more hidden fees to be aware of, and more ways you can spend wiser, be more thrifty and still enjoy life. Check out our other articles on financial health and tips for managing your hard-earned money.