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Home 2018 January 24 25 Credit Card Mistakes You’re Probably Making

25 Credit Card Mistakes You’re Probably Making

Mistake No. 14: Not paying attention to common fees

Credit card issuers rake in a lot of money from fees. According to industry research organization R.K. Hammer, credit card fees and interest income topped $163 billion in 2016. Many cardholders are occasionally slapped with late fees, for example, and they can be as much as$27 for your first offense and more than that for subsequent offenses.

Cash advance fees are another way to lose money. They are typically 5%of the sum you’re withdrawing or $10 — whichever is greater. So take out a$100 cash advance and you may be charged $10 (which is a 10% fee in this case!)for the privilege. Take out $2,000 and you may be charged a 5% fee of $100 –plus interest on what you borrow! Know what fees your card(s) charge and aim to avoid them.

Jan 24, 2018cleverfinance
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