Having and using credit cards can actually be a great advantage if you use then and understand them correctly. The downside to using many credit cards however, can often be their associated fees. If you can avoid these fees though, you may find that using credit cards can be an attractive option, and by way of rewards, might even save you a little money if you use them properly. Here are a few ways that might help you avoid those annoying credit card fees.
Know Your Spending Habits
Knowing how much you spend, when, and on what, can help you be prepared to pay off your balance when the time comes. Carrying a regular balance can leave you open to excessive interest rates and finance charges.
Honor Your Credit Limit
It might also be pertinent to your avoidance of fees from credit cards that you know and honor your credit limit. Being unaware of what your credit limit is, or ignoring how much you are spending and thereby exceeding this amount, could result in costly fees.
Plan Ahead
Having a general idea of how much you have spent in a particular billing period, and when your payment is due can help you be prepared to pay off your balance when the time comes. This preparation may help you ensure you have enough money in your bank account to pay your balance in full and therefore avoid interest and fees upon your carried balance.
Limit Cash Advances and Currency Exchange Fees
At times, such benefits as cash advances or currency exchange options might be a necessary evil. When traveling on vacation or overseas, your options might be limited, but fees associated with such transactions can add up quickly if you aren’t prepared for or aware of them.
Utilize a Debit Card if Possible
Consider utilizing a debit card in place of your credit card if you are uneasy about the possibility of exceeding your credit limit, not being able to pay off your balance on time, or exposing yourself to other fees. While debit cards carry risks of their own, if you are sure you have money in your account to cover a debit card purchase, it might be an alternative to credit card use.
Understand Benefits
Items like 0% balance transfers or interest free days can be benefits of your credit card if you understand and utilize them properly, but can result in costly fees if you misuse, misunderstand, or abuse these options.