How to avoid hidden credit card fees? Learn with these tips!

Learn how to avoid hidden credit card fees and charges

When was the last time you actually read your credit card bill? Yes, most of us take a quick glance and pay off the balance, without questioning those small amounts that seem insignificant.

But that’s where the problem lies: hidden fees and charges can accumulate and suck up your money without you even realizing it. We’re going to unravel this mystery and show you how you can avoid these financial pitfalls in a simple and practical way. Read on to the end!

1. Know your credit card agreement

It may seem obvious, but many people never read the terms and conditions when applying for a credit card. The fine print hides crucial details, such as annual fees, interest on late payments and even charges for use abroad.

So before you sign up, take the time to understand exactly what you’re agreeing to. If you already have a card, ask for a copy of the contract to review (hint: they are usually available on the card issuer’s website).

Tip: Use tools like Credit Karma to track your credit score and better understand the details of your card.

2. Identify and question suspicious charges

With each bill, review each item listed. Have you found anything strange, such as a “maintenance fee” or a charge you don’t recognize? Contact your card company immediately. Often, charges can be errors or even fraud.

Finally, it is worth emphasizing that you should not accept vague explanations, demand details and, if necessary, dispute the charge.

3. Avoid interest by paying the full bill

Paying only the minimum amount seems like a good idea, especially when the budget is tight. But what you may not realize is that the interest on the remaining balance can be exorbitant.

For example, a $500 purchase could end up costing you twice as much if you take months to pay it off. Whenever possible, pay the full amount to avoid this interest.

4. Beware of “too good to be true” offers

Who hasn’t received a call or email offering an “upgrade” on their card with incredible advantages? These offers often come with catches, such as unexpected increases in the annual fee or hidden conditions. If you’re interested, ask for all the details in writing before accepting.

5. Use apps to manage your expenses

Nowadays, there is no shortage of apps to help you keep track of your spending and identify unusual charges. At first, apps can be a good option, especially for organizing your finances and alerting you to any suspicious activity on your card.

In addition, many banking apps already have integrated functions that show detailed fees and expenses.

6. Keep an eye on international fees

If you travel frequently or shop on international websites, you may be paying additional fees without realizing it. Check to see if your card charges “international transaction fees” and, if so, consider switching to a card that doesn’t have these charges, such as the Chase Sapphire Preferred or others that specialize in travel.

7. Monitor your credit history regularly

In addition to protecting your money, avoiding hidden fees also helps protect your credit score. Incorrect charges or delays can affect your history and harm your ability to obtain credit in the future. Tools such as Annual Credit Report allow you to review your credit report for free once a year. Take advantage of it!

8. Avoid adding unnecessary extra services

Many card issuers offer additional “protections”, such as purchase insurance or loyalty programs, which come with an extra fee. Before agreeing, ask yourself if you really need the service. Often, these protections are already built into the card at no extra cost.

Conclusion

At the end of the day, avoiding hidden fees and charges requires attention and, above all, control. Reviewing your invoices, knowing the terms of your card and using digital tools are simple steps that make a huge difference.

Remember: every penny counts, and you deserve to make the best use of your money. So get started today! Take a look at your latest bill, download an app to organize your finances and question that charge that seems out of place. Small steps can save you a lot in the long run. And who doesn’t like saving money?

Written by

Juliana Raquel