How to Avoid High Credit Card Fees and High Interest Rates

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By CM Herold
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High Credit Card Fees and Interest Rates

Credit card fees and interest rates have been on the rise along with excessive charges for late fees, cash advance fees, and over the limit fees. Even when a person has been diligent about making payments on time and staying under the limit, creditors are still raising credit card fees and interest rates. To avoid high credit card fees and high interest rates, follow the steps below.

Difficulty: Moderately Easy

Instructions

Step 1

To avoid high credit card fees and interest rates, keep track of monthly payments, balances, fees, and credit card interest rates each month. Many people do not know what credit card interest rates they are paying each month. If you notice that that any credit card interest rates have increased or are unusually high, contact your creditor and ask if they will give you the lowest credit card rate possible. If they say no, ask them what you need to do to get your interest reduced to a more reasonable level. Check your credit statement each month for any fees. If you find any fees, contact your credit card company, and ask them to remove the fee. It's best to contact creditors in writing or by email through their websites. If you call, chances are you will end up in India speaking with someone who is not authorized to give you the best credit card rates and who is trained to say no.
Step 2

Consolidate high credit card interest rates and transfer balances to avoid high credit card interest rates. Most creditors have special rates and even sometimes 0 credit card rates for balance transfers. Compare credit card rates, but make sure to read all the information and avoid excessive transfer fees. Check the duration of low credit card rates and the credit card interest rates after the introductory period expires.
Step 3

Avoid making late payments and exceeding limits to avoid high credit card fees. Most creditors will raise credit card interest rates if a person is one day late. They also usually charge an excessive late fee. Creditors may charge over-limit fees. Going over your limit, may also make credit card interest rates go up. Some people divide their monthly payments in half and make two payments each month to save money on daily credit card interest rates and to make sure accounts are paid on time.
Step 4

To avoid high credit card rates, be aware of how your creditor applies your payment each month to your balance. Many times creditors apply payments toward the amount of the balance with the lowest interest fees first, which means the balance applied towards the higher rates is not being reduced. Make sure to understand at what credit card interest rate new purchases are being charged. Only use cards with the best credit card rates for new purchases.

Comments

craftlover said

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on 4/17/2009 Great article on how to avoid high credit card rates. I love how these banks took our tax money and then turned around and raised the interest rates on the very people who bailed them out.

TaniasPage said

on 4/8/2009 good information, i have just found out that credit card companies are getting away with raising interest rates due to economy. I definitely advice that if you have no credit cards, keep it that way. I hope that the new law/rules that is in the media actually becomes true , which is more protection for the credit card holder. 5* and recommended.