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How to avoid late payment fees on your credit card

Published on November 25th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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Having the right piece of plastic can give you access to convenient shopping especially when it comes to making those important purchase. Credit card fees can affect your monthly repayments and if you fail to keep track of what you are forking out it can affect your repayments in all the wrong ways. To avoid attracting a late payment fee and effectively managing your credit card fees these are a few things you should know.

Knowing what fees that come with owning a card can help you choose a card that is right for you and it can also help you effectively manage your card fees. There are common fees that come with having a credit card. It is wise to compare credit card fees when looking for a new card. This will help you know whether the card will be affordable for you in the long run.

Annual fee

This is a standardised fee across all credit cards that you will have to pay each year of owning the card. Annual fees can range from $0-$700 if it’s a reward card and can go up to $125 if it’s a normal credit card. If you have included additional features such as rewards which can increase your annual fee. You still can choose how much you are willing to pay for your cards annual fee by comparing cards. It is also important that you check that the card is suitable for the type of spender you are.

Credit card surcharge fee

When using your card at certain businesses, cafés or restaurant you could be slapped with a surcharge fee the transaction, which is a percentage taken off your purchase amount. However, you are protected against excessive payment surcharge fees.

Over limit fee

You are given the choice to choose your credit cards limit that is in the range of what your credit card issuer offers. It is important that you choose a limit that will comfortably suit the type of spending you will be doing and can afford before setting it. Depending on your credit card issuer you could fork out an over limit fee if you exceed your credit cards limit.

International transaction fee

Using your credit card to swipe for overseas transactions can attract an international transaction fee that can be as high as 4% on every purchase you make. This is also subject to online purchases too. Using cash or a 0% foreign transaction fee credit card can help protect you from attracting these fees which can drastically affect your monthly card repayments.

Late payment fees

Choosing a low fee credit card is an effective way to keep your credit card fees under control. It can also help you avoid falling into a debt spiral that can affect your credit file. When comparing your credit card options, looking at its monthly repayment will let you know if the card is within your financial reach. Using tools such as an online calculator will let you know how much you will be paying in monthly repayment with a certain card so that you don’t bit more than you can chew. Failing to meet your monthly repayments can result in you forking out a late payment fee which can go up to $30, which is not a sweet deal when you still have to pay interest on your credit card.

Cash advance fee

Withdrawing money from your credit card from an ATM can attract a withdrawal fee that can go up to 3% on the amount you have withdrawn. Try to avoid making ATM withdrawals on your credit card as this can come with an extra serving of interest that can be charged by your provider that can be as high as 20%.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

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