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• Credit card catches
• Which credit card

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Credit card catches

You can limit the charges on your card?

There are several common charges to go on any credit card, interest, bank fees and or the annual card fee. You can actual limit these charges;

Call your financial institution and bargain with them to get your interest rate down. A lower interest rate means less interest is charged to your card, giving you a bit of breathing space. Financial institutions are becoming increasingly competitive for business and, while some interest rates are as high as 17%, if you can negotiate your rate down to 12%, you will make a 5% saving on future interest charged to your card. If the bank thinks they might loose your business to a competitor, chances are they will do whatever it takes to keep your business. Get to know what is on offer by other banks, and go to your bank with a sound knowledge of your alternatives.

If you have a rewards program attached to your credit card, you can reduce the interest rate of this card by opting not to participate in the bank’s reward program. Call your financial institution and see how much they can shave off the interest rate. Since the bank has to pay for their reward program, it seems only natural they would recoup this cost through the credit card’s interest rate.

You may unknowingly incur additional extra charges which eventually appear on your credit card statement. For instance, you will incur a late fee payment if you do not make the minimum payment in time. You should be aware of your banks payment cycle: pay too early and you miss the cycle, and even with all your good intentions you will be charged a fee. If you exceed your credit card limit, don’t expect your card to tell you. Some financial institutions will let you know by charging for this privilege. If you don’t carefully examine your statement, you won’t know about such charges and they will add to your credit card debt.

Mark the due dates for credit card payments where you will see them. It is important to ensure you don’t miss a payment. You will incur severe penalties for any missed payments, which will only serve to increase your credit card debt.

Similarly if you exceed your credit card limit, don’t expect the card provider to let you know. Rather they will charge you for the privilege some up to $30 a month until the credit card comes under the set limit. Many people believe their credit card will be declined, and therefore fail to keep account of their balance. Nowadays it seems the credit card providers are allowing their cardholders to breach their credit limit only to be penalised.

Find out if you qualify for a waiver of your annual credit card fee. Some financial institutions charge up to $100 in annual card fees. If you have a number of accounts with your bank, such as mortgage, insurance, and savings accounts, you may well be eligible for a waiver of the fees. Check that you don’t need to spend a minimum amount on your card.

The credit card provider may charge for duplicate statements if there are additional cardholders.

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