3 Defenses Against Credit Card Fees

Credit cards may offer convenience, security and the opportunity to earn points for travel and other rewards; however, one thing credit cards should never do is drain cash from your wallet. Consider three defenses against costly credit card fees.

1. Ask to remove late fees: Many credit card issuers are quick to assess late fees, which often exceed $25, even if a payment is a day late. Cardholders who always have paid on time in the past may be able to eliminate a late fee by asking to have it removed.
2. Check the Annual Percentage Rate (APR): Following a late payment, you'll want to check the APR that you're being charged. Many card issuers will raise this rate to penalize late payments, which can make carrying a balance even more expensive.
3. Make payments on time: Your best defense against costly fees is to make payments on time. Be sure to read and understand your cardholder agreement, and try to avoid carrying a balance.

Consider these tips so credit cards can help your financial situation, not make it worse.

Provided content is for overview and informational purposes only and is not intended and should not be relied upon as individualized tax, legal, fiduciary, or investment advice.