The following lists the many extra charges which may apply to our credit cards. It is wise to make yourself aware of these charges, and whether or not they apply to your current credit card and if so, the penalties which will apply.

• Annual Fee – The annual fee for credit cards varies widely from $0 up to $400. If you do pay an annual fee, it is likely that it is covering other items such as travel insurance, higher rewards and other benefits. If you are paying an annual fee you should make sure that what you are receiving in return is worthwhile.
• Late Payment Fee – Many of us have been slugged with this fee at least once or twice. If you fail to keep track of your due date and miss a payment, even by 1 day, you will pay. This extra charge can be avoided by ensuring that your payment is received on time each and every month.
• Exceeding your Credit Limit – Another charge which can apply is if you go over your credit limit. This charge can be avoided by keeping track of your monthly credit card purchases.
• Balance Transfer Charges – If you transfer your balance to another credit card you may be charged this extra charge. Be sure to take this into account when considering a balance transfer.
• Additional / Lost or Damaged Cards – Many credit cards have a fee for an additional card holder. This is most likely to be a fee which will be charged annually. Also, lost or damaged credit cards may also incur an extra charge.
• Low Usage Charge – Some higher end reward credit cards can impose an extra charge if you spend less than a certain amount per annum.
• Cash Advances – Many credit cards have much higher rates for cash advances. Cash Advances should be avoided unless absolutely necessary.
• Using your Credit Card Overseas – Some credit cards can attact an extra charge for making purchases abroad. If you’re planning on travelling, make sure you look into this to see if this applies to your credit card.

Be sure to read the fine print of your credit card agreement. This way you will be aware of all the situations which you many attract extra fees and charges and avoid them.

Many offers usually have one very appealing feature hoping to attract you to signing up. They will either offer a great balance transfer rate, a low interest rate, or waive the annual fee. Many now offer bonus reward points for signing up.

Usually you many find that this great feature won’t last forever. Balance transfer periods expire, low interest rates may be for a limited time only, and no annual fees may be only for the first year. If you are tempted by one of these offers, make sure you check out the terms and conditions and determine whether this credit card will continue to offer you a good deal when these bonus features expire.

To compare your credit card features with the leading credit cards visit credit card comparison.

There are many advantages to owning a credit card including online payments, no need to carry cash around and having credit available for large purchases. However, there are also many pitfalls which you need to be aware of.

Before applying, or when you receive your credit card, you need to thoroughly read thru your contact and the terms and conditions.

Make yourself aware of the penalties and additional fees for things such as late payments and exceeding your credit limit.

Being aware of the consequences can help you to stay in control and avoid getting into the credit card debt cycle.

The most important things are to:

• be aware of your credit limit
• pay your bills on or before the due date
• understand the interest free period
• pay at least the minimum monthly balance each month

Choose an appropriate credit card and take into account interest rate and annual fees and balance transfer rates.

By understanding the penalties of your credit card and the terms and conditions you can use your credit card to its full advantage without falling victim to credit card debt. For further information check out our credit card tips and learn how to manage your credit cards wisely.

Today’s market has seen Credit Card providers offering all sorts of incentives to apply for their Credit Card. This competition for your business has provided us with many great deals, but can also be overwhelming with all the different cards available.

There are several important factors to consider when deciding which Credit Card is best for you:

Age
• Credit Ranking
• Spending needs and habits
• Income
• Special Interests

Before you choose a credit card, you need to ask yourself a few important questions about how you will use the card. By understanding some important factors, you should be able to find the right card to suit your needs. By selecting the right card, you can save hundreds, and maybe even thousands, of dollars.

The main things to consider are: What is the interest rate? Does it have an Annual Fee and if so, how much? Does it offer interest free days on purchases? Does it have a different rate for balance transfers? How long does the reduced balance transfer rate apply for? Are there any reward programs with the Credit Card?

Interest Rate: Probably, the most important aspect when choosing a credit card is to determine if you plan to pay the card off each month before any interest is charged, or if you use the credit card as a source of credit and pay it off gradually.

If you are the latter, a credit card which offers a low interest rate is best for you. If your monthly balance is $2000, and are paying 18% compared with a card that charges only 6.99%, this is equivalent to a saving of $220 per year! Many companies now offer Credit Cards with interest rates as low as 5.99%, whilst some are as high as 19%. There are some great offers currently for

low interest rate Credit Cards.

However, if you are a person who pays off the balance before the due date, then the number of interest free days if a more important factor to consider than the interest rate.

Annual Fee: The next important factor to consider is the Annual Fee. There are Credit Cards now which offer no annual fee at all, whilst some can be hundreds of dollars. Some providers choose to waive the annual fee for the first year as an enticement to new customers. But be careful, as quite often, cards with no annual fee can sometimes have a higher interest rate.

Balance Transfers: In a bid to try and get your business many providers now offer great deals for balance transfers. Some offer 0% interest on balance transfers for specified time periods. Some even offer this for the life of the balance. If you have a large credit card debt on a high interest card, you can save you hundreds of dollars in interest payments by transferring to a card offering 0% or even low interest balance transfers.

Rewards: If you do most of your spending using your credit card and regularly pay it off each month then you should consider the benefits from a credit card offering a rewards program. Often rewards credit cards have higher interest rates or annual fees than other types of credit cards. However, interest rates are not important so long you pay the bill each month and the rewards could well exceed the card fee. Rewards Programs offer many things including Flybuys, frequent flyer and extra points can be earned by paying for everyday items including groceries, bills and even your rent.
One last important thing to consider is Late payment penalties. When evaluating which credit card is right for you, it is important to consider late payment penalties. If a late fee is charged, what is it? Some providers can more than double your interest charges if you pay late even by one day. It is definitely something to take into consideration.