Credit cards are a handy piece of plastic to have and are generally a safe way to make sizeable purchases. However, that’s not to say it doesn’t come without any downsides or additional costs.
There are many companies out there that have sizeable charges attached to borrowing money. These surcharges can really add up and cause people to go deeper into debt.
The worrying thing is that people have to read the fine print in order to find out about these charges. This means if someone doesn’t do their research or misses vital information, they could be in for a nasty surprise.
So, this article will list some sure-fire tips to avoid getting into credit card debt by avoiding those expenses.
Do your research when shopping around
If you are looking for a credit card with reasonable charges, it’s crucial to compare costs from different providers. Never assume you are getting the best deal just from taking someone’s word for it. You need to add up all the extra costs to get a feel for whether the deal is good.
Once you have spotted something worth going for, don’t stop there. Keep searching to see how you can lower the price even more. There are certain payment methods that are cheaper than others for example.
Pay sooner to avoid late charges
Different banks and credit card companies will have certain time frames they will allow you before the start charging. It’s important to find out the grace period so you can pay within it to stay clear of charges.
How good is your credit score?
For those with a reasonable to good credit score, they could be in for lower finance charges automatically. It’s worth talking to your lender about these options if you have a history of paying on time. There are several sites online that offer free credit reports so you can check and present this to your bank.
Stay away from advances
Cash advances can be offered to customers but stay away from this to avoid significant charges. It will wrongly make you think that your credit card is a debit card and you can rack up finances quicker.
Be wary of balance-transfers
Credit card companies will always advertise tasty offers that present amazing ways to decrease the APR. This can be a slippery slope as the rates may increase after the transfer period is over. Always check up on your credit card charges so that they aren’t on the constant increase.
One of the best ways to avoid getting a dodgy deal that increases your expenses is to shop around. You can find some great comparison sites online that sift out the good deals from the bad. Doing so will help you avoid needless charges and can significantly lower your overall costs.