3 Ways To Avoid Common Credit Card Fees

MoneyTips

Credit cards can be a useful way of finding extra finance and easing cash flow. This convenience comes with many costs, including late fees, cash advance fees or annual charges. Most of these costs can be avoided with a little know-how.

Since the 2009 introduction of the Credit Card Accountability, Responsibility and Disclosure (CARD) Act, life is fairer for consumers, easing worries about hair-trigger penalties and interest-rate hikes. Credit providers still make lots of cash via fees, though. For example, issuers can charge $27 for a late payment, rising to $38 if a cardholder pays late again. Balance transfers often incur a 3 percent fee, and drawing money at an ATM results in a charge on most cards, with increased interest on the cash advance.