With more consumers getting smart about paying off their monthly balance,
card issuers have gotten creative with their fees — from transfer
fees to over-the-limit fees.
That's why you need to actually read the fee disclosure, which should
be listed in a box on the credit card offer. Here are some things to
look out for:
Fees…Did You Know?
Annual fees.
This one is simple — if you've got a good credit
rating and pay off your balance in full, don't pay one. There are enough
good cards out there that don't charge this fee that it can be easily
avoided.
Closure fees. Some cards will actually
charge you a fee for closing an account, sometimes as much as $50. This
is highway robbery at its worst, and the only way to avoid it is to
know up-front whether the card issuer charges this fee.
Late fees. Late fees can be charged if
your payment is just one day late and can also lead to an increase in
your interest rate.
Overseas transaction fees. At one time,
using your credit card abroad was a pretty good deal since the 1% fee
charged by Visa and MasterCard sure beat the rates at those exchange
kiosks. But these days, it's become increasingly common for issuers
to tack an additional 1% or 2% on top of the credit card company's fee.
