Youre wise in the ways of credit cards. You know not to be taken in by offers of 0% interest rates, and you know your regular APR from your default APR. But are you aware of all the other tricks credit cards can play on you? Before you fill out a new application, check to see whether it is on this list of credit cards to avoid.
• Credit cards that charge an annual fee. Once upon a time, credit was extended only to the wealthy, and they were willing to pay to own a credit card. Annual fees are a relic of those days. Nowadays, with every five and dime offering its own credit card, theres no excuse for annual fees. If you find an excellent card and the only drawback is that it has an annual fee, call the issuer and ask whether they will waive the fee for you. Many companies will do so.
• Credit cards that charge fees for online or phone payments. These fees will soon be as obsolete as annual fees, but right now, many issuers still charge their tech friendly customers to pay electronically. If the card you want levies these fees, check to see whether only expedited payments carry a fee, or all payments are hit. If normal electronic payments dont have a fee and only expedited payments (rush payments you make when there is no time to get any other form of payment in before the deadline) carry a fee, the card may still be a good deal. (Just watch your deadlines.) If the card charges for all electronic payments, back away and go find a lender thats a little more in tune with the times.
• Credit cards that charge a monthly maintenance fee. Cards with these fees are designed for consumers with poor credit ratings who cannot qualify for any other cards. To make matters even better, such cards usually have a credit limit so low that the fees quickly eat up the available balance. If your credit rating is desperately low, dont try to improve it by taking one of these cards. A secured credit card is a better bet. To get one of these cards, you place a small deposit with a reputable lender, and the deposit becomes the backing for your new line of credit.
With a plethora of credit cards from reputable lenders on the market, even people with poor credit can find a credit card that does not charge exorbitant and unnecessary fees. Read the fine print carefully until you understand all the details, and call the issuer if you have questions. You deserve a credit card that helps, not hurts, your financial situation.