Credit Card Charges to Avoid

Let’s cut right to the chase, there are many ways that Credit Card companies can charge you for using their cards. We’ve outlined some of these below, so be very careful to avoid these:

Late Payments / Returned Payments / Exceeding credit limits

Generally banks will charge you a fee for paying off your balance late, for paying off your card with a bounced cheque or for exceeding your credit limit. The best way to avoid these charges is to check on your card weekly. Internet banking makes it fairly easy to regularly monitor your credit card status. Access to internet or phone banking should be a key requirement when selecting your credit card. These fees are generally around £30.

Balance Transfer Fees

Most institutions will charge a balance transfer fee, this is more likely if they are offering a 0% balance transfer rate. Be sure to double check for this when you’re signing up for the card. At Credit Card Finder UK, we try to always flag these fees when we are reviewing credit cards. The rate of this fee is often around 3% of the amount transferred.

Foreign Currency Fees

If you make transactions in currencies other than the sterling, your bank will generally charge you a fee for that transaction, in the vicinity of 3% of the value of the transaction in pounds. This can hit doubly hard as generally the exchange rates on card aren’t favourable, so your charged once for the foreign currency amount, then a charge is levied on top of that.

Payment Protection Insurance

While payment protection insurance can be a handy thing to have, it will incur additional charges against your card. Be aware that when signing up, banks often include this as a default option.

Ultimately we all need to pay close attention to our credit card situation to make sure to avoid these charges. We suggest checking your credit card balance and recent transactions at least every week. We also highly recommend making your card payment at least 5 working days before it’s due, just to be 100% sure that the payment goes in on time.

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