4 Hidden Extra Charges in Your Credit Card

Your credit card promises you a lot of free rewards and benefits, but it is important to be fully aware of the consequences of your actions and ensure that you do not indirectly end up paying heavily for these benefits. Look out for the four things listed in this article to be sure of your purchases and rewards.

Interest rates

Bank charges and the interest rate promised to you upon purchase of the card cannot be changed without notice. It is important to be well versed with these charges and rates so that you can check the amount charged to you towards interest and fees. Another thing to be mindful of is that most banks levy high penalties for late payments on credit cards and therefore as an end user of credit cards, you should regularize your repayment schedule and meet deadlines.This will save you the extra penalty that is charged as late payment fee on credit cards. Make sure that your bank has your correct billing details including your address and email address so that all communication from the bank reaches you in time.

Free vs fee

Before you sign up for a credit card, find out what are the free facilities that you will be able to use and which are the facilities that the bank will levy a charge on. Generally the services which attract higher charges are balance transfer, credit card annual fees and cash advance fees, to name a few. Find out what the charges are and which services are complimentary. If you know these then you will regularly use certain services; it is best to get a card that has a no fee policy on such a feature.

A ‘no strings attached’ rewards program

Credit card providers are upfront about the benefitsof their cards and their rewards program is clearly spelt out. However, as the cardholder it is important that you read your agreement carefully including the terms and conditions so that you know exactly what you are signing up for. Being well informed of every facet of the card you opt for can save you a lot of money.

Fraudulent charges that go unnoticed

Most credit card holders skim through their credit card statements before clearing off the monthly outstanding. It is important that you learn to check every entry in your card statement. You could be the victim of identity theft or credit card fraud and thoroughly checking your statement every month is the best way to make sure that there are no unauthorized charges on your account. Don’t just look for large transactions but check even the smallest ones as often the smaller unremarkable charges add up to a fair amount.  Keep your bank account and credit card details in a safe location that is easily accessible so that in the situation that you find yourself victim to credit card fraud, you can connect with your bank instantly to limit the damage.

Visit us to find the perfect credit card that meet all your needs. Keep all the points mentioned above when you make your choice!