How to avoid hidden credit card fees? Step by step

Learn how to avoid hidden credit card fees

Did you know that credit cards can be practical and often essential tools in our daily lives? That’s right! They help facilitate purchases, reservations and even the accumulation of points and benefits. However, not everything is as simple as it seems. One of the biggest pitfalls many consumers face is hidden fees, which appear when you least expect them.

These charges can be detrimental to the personal budget and, if not carefully monitored, can lead to big surprises at the end of the month. In this article, we’ll cover how to identify and avoid these hidden credit card fees, ensuring that you make the most of the benefits.

Understand what common fees are

The first step to avoiding hidden fees is to understand what the most common fees associated with credit cards are. There are several of them that you may be charged without realizing it.

The annual fee, for example, is one of the best known, but there are also others that can be charged depending on how you use the card, such as late fees, ATM withdrawal fees or currency conversion fees for international purchases.

Many of these fees are not clearly highlighted when you sign up for the card, which can leave consumers unprepared. The late fee, for example, is a very common charge, but one that can be avoided by paying the bill on time.

Read the contract carefully

One of the best ways to avoid surprises is to read your credit card agreement carefully. Even if it seems tiresome, understanding all the details of your contract will help you identify possible fees and extra charges that may apply.

The terms and conditions usually contain information on interest rates, service fees and other charges that the bank may apply, such as renewal fees, balance transfer costs, among others.

When reading the contract, look out for clauses that mention fees you are not aware of or that you did not know would apply. If you don’t understand any part, don’t hesitate to contact the bank or financial institution to ask for clarification.

Pay attention to the due date

Another effective way to avoid fees is to always pay attention to when your bill is due. Paying your credit card late generates very high interest rates, as well as other penalty fees that can be difficult to avoid.

That’s why it’s essential to keep a close eye on when your bill is due. A good tip is to set up alerts on your cell phone or in the bank’s app, so that you are reminded a few days before the due date.

Also, if you realize that you won’t be able to pay the bill in full, try to negotiate with the financial institution before the payment becomes a high-interest debt.

Keep an eye out for hidden benefits and fees

When choosing a credit card, many consumers are attracted by the rewards and benefits the card offers, such as cashback, air miles and discounts at commercial partners.

However, it’s important to check whether these benefits really outweigh the additional fees the bank may charge. Some rewards offers can be accompanied by costs which, if not realized in time, can end up nullifying the advantages.

For example, a card that offers a high cashback percentage may have a very high annual fee or an interest rate on the outstanding balance that outweighs the benefits you receive.

If possible, use cards with no annual fees

A good way to avoid hidden fees is to choose credit cards that don’t charge annual fees. These cards may not offer the greatest rewards benefits, but they are a valid option for those looking for simplicity and who want to avoid extra costs.

In many cases, cards with no annual fees, such as American Express, still offer good payment terms and can be advantageous for those who don’t want to be tied to a fixed rate every year.

Review your invoices regularly

Finally, regularly reviewing your invoices is one of the best practices to ensure you’re not paying hidden fees. By checking your invoices on a monthly basis, you can identify charges you weren’t expecting, such as late charges or extra fees.

If you notice anything wrong or unusual, contact your financial institution immediately to resolve the problem.

Conclusion

Avoiding hidden credit card fees requires attention, organization and, above all, a proactive approach to managing your finances. By understanding common fees, reading your card agreement carefully, keeping an eye on expiration dates and choosing the most advantageous options, you’ll be able to enjoy all the benefits your credit card offers without worrying about unexpected charges.

Finally, maintaining strict financial control and reviewing your invoices are important steps to ensure that your credit card is a useful tool and not a hindrance.

Written by

Juliana Raquel