Credit Card Charges
When shopping for credit cards, most people get their eyes fixed on APRs (annual percentage) alone. But in using credit cards, you'll also come across a lot of other fees. These additional fees may be a result of using a special service or your inability to pay on time. If you want to get full-range benefits at lower prices to pay, then you should study credit charges carefully. This will help you pick the best credit card offer or reduce the total cost of your debt by knowing which fees to stay away from.
APR - It is the basic interest rate applied to your monthly balance as a finance charge. With lower APR, you have smaller prices to pay for revolving credits. However, these rates are subject to changes over time.
Penalty Fees - Most credit cards give you interest free-days to pay for your credit card balance. But once you fail to meet the requirements, you may be charged an additional fee for late payment, exceeding the credit limit, or not paying the finance charge. Some credit cards also has minimum amount requirements that you need to charge on your credit card account.
Annual Fees - Not all credit cards have annual fees. These fees may cover for the generous rewards and bonuses you'll get as a member. This includes travel upgrades, insurances, and miles points.
Cash Advance Fees - Different rates may be charged for cash advances, which may also apply the day you get your cash.
Balance Transfer Rates - Some credit cards offer zero to low introductory rates, though it may revert to higher APRs once the promo expires.
Merchant Service Fees - Your merchant reserves the right to charge you with a service fee for accepting credit card payment.
Other Service Fees - Cash withdrawals or using your credit card in other countries may incur additional service charge. You'll also be charged when requesting for a new card or applying for a higher credit limit. Make sure that you're fully aware of all ongoing fees before you subscribe to the credit card service.