Credit card companies are finding creative ways to separate cardholders from their money.
* Late statements. Credit card companies have learned that delaying their customers’ monthly statements for a week or so makes it more likely those customers will incur late-payment fees.
* No limits. Even though a transaction might put you over your credit limit, it may be approved–and an over-the-limit fee will be charged.
* Higher rates. Making a late payment can trigger an over-the-limit fee and a hike in the interest rate charged on your balance. According to one report, nearly 40 percent of credit card companies say that they increase interest rates charged to cardholders who make late payments on other credit cards or loans.
The best way to avoid most credit card fees is to pay your balance early, in full. Use online bill-pay if you can. Otherwise, use the preprinted envelopes and never exceed your credit limit. In addition, you should check your credit balance and request a limit increase if there is a chance it could be exceeded.