Use of credit cards can get costly if not used properly. Learn how to avoid fees and interest to keep your credit card use free. Here are seven tips to help.
1. Choose the right card.
Pick a card with no annual or monthly fees. When your card charges annual and monthly fees, you’ll wind up paying for the card whether or not you use it at all. Some cards have fees that are waived when you spend a certain amount within a period of time. Look over terms and conditions and if the amount needed to avoid fees is more than you can comfortably spend, look into other credit cards.
2. Know your card’s grace period
The grace period is the time you have to pay off your balance before you’re charged interest. Make sure your card offers a grace period and be mindful to pay off the balance within it. If your card doesn’t offer a grace period, you’ll always end up paying interest on anything you purchase with the card.
3. Make your payments on time
On the off chance that you forget to make a payment and it ends up late, you’ll be charged a fee. Paying on time implies making at least the minimum payment due before the due date. To avoid paying anything for your card, pay the entire balance before it’s due.
4. Stay below your credit limit
The credit limit is the most you can charge to the card without being charged a fee. Your credit restrict is the most extreme sum you can charge without being charged a punishment. Some credit card companies have wiped out these fees if you opt-in to overdraft. If you opt out of this, your card will instead not allow you to charge any amount over your credit limit. It’s best to keep a distance between your spending and your credit limit to be safe.
5. Be certain that your payment account has the money to cover your card payment
Before making your credit card payment, double check that the account from which you’re transferring the payment has the necessary amount for the payment. When it doesn’t, the payment won’t go through. As well, the credit card company and possibly the account from which you attempted to make the payment from, will charge a fee. These fees usually range from $25 to $40.
6. Skip balance transfers and cash advances
Balance transfers and cash advances are offered by credit card lenders but almost always cost a fee. Many times, cash advances also have no grace period so you’ll automatically be paying interest on them.
7. Thoroughly understand your card’s terms and conditions
The agreement you’re given after applying for your card should be thoroughly read before you start using your card. The agreement or disclosure as it’s sometimes called provides all terms and conditions of the card. Any fees will be explained in it.