The Ultimate Guide to Credit Cards

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Cash Advance Fee

If you ever need to take money out of the ATM from your credit card, you will have to pay a cash advance fee. This is not to be confused with the actual ATM fee that you are charged to use the ATM machine. In the end, you will spend a lot more getting cash on hand than it’s worth. Most cash advance fees are around 3-5 percent, though there are some card companies that will charge a set amount per transaction.

Balance Transfer Fee

This is a fee you might experience if you try to consolidate your credit cards. When you use one card to pay off another one, the card you are transferring the money to will charge a fee for its service. In most cases, the balance transfer fee is 3 percent of the transaction amount; however, we have seen fees as high as 5 percent. Before you combine any of your credit card balances, know how much it will cost you overall.

Foreign Transaction Fee

This is something you will have to pay if you use your card in another country. It primarily covers the cost of converting your currency into foreign currency. Most cards charge a fee of 3 percent, but some will waive their foreign transaction fees. If you plan to do a lot of traveling overseas, these are the kinds of cards to look for.

Other Fee

Of course, you may encounter some “miscellaneous fees” that are specific to your credit card provider. These could be for anything from customer support to the cost of the plastic cards themselves, depending on whom you bank with. If you want to fully understand these fees, you need to thoroughly review the terms and conditions of your credit card. If you have any questions, contact the card company to find out what you can do.

"With the right research early on, you can adjust your spending habits to reduce the cost to carry a credit card."

With the right research early on, you can adjust your spending habits to reduce the cost to carry a credit card. Take the time to research because the savings will be worth the effort.

Now that you understand the costs associated with carrying a credit card you are finally ready and well equipped to choose the best card to fit your needs. However, with so many special offers made by credit card companies to lure in new customers, it can be easy to jump on the best offer that catches your eye.