Lenders will always want to get as much out of us as they possibly can, and when it comes to hidden credit card charges, this is where most of them shine. When signing your contract with a potential lender, you may not have the time to read through the whole document, or you may not even understand the language used.
As such, you may end up paying small, and avoidable expenses all the time. Banks actually make billions from overdraft fees alone. Utility companies keep track of late fees whenever your payment is a little late and they capitalize on this.
In this review, we take a look at credit card terms and conditions or the FINE PRINT. This is what you should look out for, so you can know the exact charges the card has. With such knowledge, it is very easy for you to identify when you have been overcharged, or charged for something that was not previously agreed upon.
Main Credit Card Charges
Credit cards will come with many charges, and they are usually included in the terms and conditions. These are what you should be aware of.
Every credit card you apply for will have a specific interest charge, and if you happen to carry a balance on the card, this shall cost you dearly, especially when you have only been paying the minimum payment only on the card.
For example, if you charge around $2,000 on your card for purchases, and then pay this amount within 30 days, then you shall not pay anything extra.
But if you decide to pay just the minimum amount of around 2% payment each month instead of the whole amount, then there shall be charges accruing from this, and you should be prepared for it.
Cash Advance Charges
If you are ever in a pinch and would like to take out some cash advance, then you may end up paying much more than you expected. Additionally, the cash advance fee will hit you with a higher interest rate.
Interest on cash advances usually starts accruing the same day the transaction goes through. This doesn’t offer any grace period in which you would try to avoid the interest.
There are many circumstances that the credit card company will choose to increase your interest rate, which means that you shall end up paying more interest on purchases.
For example, if your credit score drops for whatever reason, you should be keen to note what happens to your interest rate as chances are that it will go up.
Replacement Card Fees
If you lose your card and would like to get a new one, ensure that you read the terms and conditions about the procedure, and how much the company shall charge you for the replacement. Some may do it for free, which is rare, but most lenders will charge you for this.
In some cases, the lender may charge you for applying for the credit card. This information should be provided to you beforehand, and you shouldn’t just find a debit on your account that you did not authorize.
Be sure to read the terms and conditions so you can see the type of charges the lender is applying on your new credit card.
The truth of the matter is that since all of these charges are usually included in the FINE PRINT or the terms and conditions, which you must sign when applying for the card, it’s almost next to impossible to win a lawsuit against such a lender.
What you should therefore do is ensure that you read each and every part of the document in detail so you can understand the type of charges your card is going to accrue. All the best.