Finance & Loans

Be aware of credit card fees

Here are what to watch out for credit card fees.

Annual fees: Most cards charge an annual fee. Look for other things like airline miles that you earn before deciding on card that has an annual fee.

Cash advance fees: Consider interest rate, when you will be charged (some start immediately without a grace period), and any other one time fees that will be tagged on to your cash withdrawal.

Convenience checks: My card has a practice of sending me checks just after holidays when I am desperate for money. It usually comes with a teaser rate for a limited time and increased to a higher rate. Be aware of the consequences of using convenience checks.

Over-the-limit fees: This could be a very high rate often associated with a one-time over draft fee as well as it will require you to pay the amount over your limit immediately.

Inactivity fees: It may be a safety net to carry an additional card. However, if you don’t use it, you may be charged this fee. Also, it will have an impact on your credit score.

Foreign currency conversion fees: This is a higher fee and some cards are not allowed to be used in certain countries.