Credit card are undoubtedly one of the easiest and most attractive financial products for consumers. With a credit card, you can “buy first, pay later” – a bit hard to believe. However, good things do not come free. Together this also comes with fees and interest charges and others.
Credit card benefits are the charges the bank imposes on the opportunity given to us to buy goods and services without paying in advance. Interest charges are the way banks make money. In addition, banks also charge Overdue Fees, Late Payment Fee, Cash Advance Fee, etc.
People are often unconscious or caught up in these terms. Below, we present a few simple steps you can take to avoid paying unnecessary fees (or at least paying less!):
Pay your outstanding balance completely
The MOST EASY (and you will have heard it before) is to pay your outstanding balance completely on a monthly basis. No outstanding balance, no interest charges.
Take advantage of the Balance Transfer Plan
Taking a Balance Transfer Plan 0% is one way to avoid paying a lot of benefits. However, these plans usually last for a short period of time. If you have a large outstanding balance, make sure you take advantage of the balance transfer plans offered by banks!
Know when your free period ends
Most credit cards come with a grace period or interest-free (usually around 20 days) where purchases are currently not paid for interest. Take advantage of this period and pay your balance before the grace period expires.
Minimize use of cash advances
Removing cash that you do not own will always be tempting, but no way you can get cash without paying more in return. Usually the bank will charge a very high interest rate and also a fee on any cash advance, so try to minimize its use.
Pay your credit card bill on time
Late Payment Fee is absolutely unnecessary. Pay on time, all the time, and you can save hundreds of dollars a year!
Track your spending and avoid exceeding your credit limit
Once you exceed your credit limit, the bank will charge you more Expenses. With a little effort to keep track of your expenses, you can avoid paying for this unnecessary Overdue fee!
All in all
As you can see, there are many ways banks can charge you when you use a credit card. Many of these fees and charges are unnecessary and can be avoided, so be wise users and stop paying these fees from now on. You will be surprised how much you can save!