Beware of Hidden Credit Card Fees

According to state law, it is illegal to hide credit card fees from consumers. Yet it is not uncommon to hear people mention hidden credit card fees when having conversations about credit card expenses. The term “hidden fee” is simply used to describe fees that are not likely to be noticed by the cardholder. In a sense, the fee can seem hidden when it is charged to the card’s balance unexpectedly without notice.

To avoid such fees it is important to have a thorough understanding of all credit fees. Many times these fees are easy to miss because they are written in small print on the back of statements. The details of some fees appear only once on the account disclosure statement. The following information can help anyone save money by avoiding hidden credit card fees.

Examine the Fine Print

The first step taken should be to examine the fine print of the credit card application before applying for the card. Take note of every fee so that it is impossible to forget about it. If there are any questions about the card’s fees feel free to present them to a qualified agent of the appropriate financial facility immediately. By answering all questions and taking notes about the fine print of the credit card application it is possible to eliminate all unexpected twists and turns. Picking a card with fair fees and a decent interest rate will make it easier to stay out of debt.

Changing Card Agreements

It is important to note that card agreements and terms are subject to change at any time. The only warning comes about 15 days in advance in most cases, making it easy to miss these announcements and incur unexpected fees due to policy changes. Be sure to keep an eye out for notices in the mail and via email. Many times policy change notices can be found on the official web site of the financial institution. If new fees are showing up unexpectedly on card statements it is very important to find out why such fees are being incurred.

Late Payment Fees

Some card companies have changed their policies about late payments by shortening the billing periods to 20 days.  In addition, it often takes several days for a credit card bill to be processed. With these cards payments have to made every two weeks to steer clear of late payment fees! Late payment fees are the most popular credit card fees, with millions of dollars being made each year on late payments fees alone. Late payments cost about $15 to $40, depending upon the card issuer and the credit card. Some card companies will even raise the interest rate to up to 24% for exceeding the credit card’s credit limit. With such harsh penalties for making late repayments, it is easy to see why so many Americans are in debt.