When you have a brand-new credit card or two you might be tempted to just slip it into your wallet and pull it out when you need it. After all, you know the APR and you don’t plan on making any late payments, and you know the credit limit so you’re good to go, right? You couldn’t be more wrong, and if you don’t examine all the potential fees with your card long before you apply, you’re in for a big surprise. Most definitely, with card-in-hand it is best if you spend time reading that small print disclosure statement too or you can end up losing out on card perks or paying way more than you initially planned.
Discovering Card Fees Before Applying
The effectify financial website that allows you to instantly compare credit card offers and examines all the fees associated with them can make things perfectly clear to you before you sign the dotted line. Powerful search filter makes it easy for you to define the credit limit you would like to have: a figure you can base on the estimated spending you plan to use the card for. The spending filter lets you determine what you can afford; you simply click on the button marked “adjust monthly spending limit,” and the search filter opens and allows you to adjust all the following categories:
- Groceries and drugs
- Or the total credit limit
The calculation tool can help you make sure you remain reasonable and that you do not go overboard with the amount of credit you request. Even if you can afford it you don’t want a line that’s larger than you need. And if you don’t have the right kind of credit for a big line, you can end up being rejected and a hard inquiry hit on your credit score to boot.
Fees You Need to Know About
All the fee information presented on Effectify is there because it is important that you know about it. It is all too common for people to perhaps look at the zero percent APR, low annual membership fee, and then apply. It is almost hard to believe that people take on cards without being fully aware of all fees but statistics reveal there are about six fees with every card that consumers know nothing about until they encounter them on their credit card bill! It’s imperative they consider other fees too. Such fees include:
Late fees: Many people start out with good intentions and make no plans to make late payments so they might brush over late fees or forget the fees quickly. You can expect to pay about $27 just for being late. Do that just four times in a year and you are already out more than $100.
Cash advance fees: Yes, it’s convenient when you want some cash, but do you realize the fees you’ll pay for the convenience?
Return payment fees: If you make a payment and it doesn’t clear, it can be a costly endeavor indeed. You’ll pay bank fees and fees to the creditor too.
Balance transfer fees: You want to consolidate your bills and put all your debt on one card for a lower interest rate, but what are you really paying to transfer that debt?
There are some cards that have even more fees than the basic ones mentioned above. Use a site like Effectify to help you weed out the good cards with reasonable fees before you apply.