In order to avoid credit card charges, first familiarize yourself with the fees associated with every credit card that you currently use or are considering. Do not maintain any accounts that charge annual fees, and make a habit of always paying your bill on time and, when possible, in full. Also try to never exceed your credit limit. If credit card charges seem unavoidable with a particular company, you may want to close the account.
Annual fees are essentially charges for being a customer. Most stores cannot successfully charge customers annual shopping fees because people would not agree to be charged to spend their money. The same principle should apply to credit cards. There are too many credits cards that do not impose these unnecessary costs for you to feel obligated to pay them to one that does. If you currently have such an account, you should strongly consider closing it.
Interest rates are credit card charges that will usually arise if you do not repay what you borrowed at the end of the month. These rates are generally very high and can result in you paying several times the purchase price for an item if you are not careful. To avoid these costs, you should always fully repay credit used to make small purchases at the end of the month. When you make major purchases, you should pay as much as possible each month so that you can limit the amount of time that you are subject to interest accrual.
Many credit card companies make a substantial amount of money from individuals paying late. In addition to a set figure charged for tardiness, some companies will also increase interest rates, serving as a double penalty. Avoid late fees by paying your credit card bill on time every time. Another way to avoid unnecessary credit card charges is by staying within your limit. Do not allow yourself to be charged because a company decides to extend you extra credit.
If you have a credit card and the company seems to be creating new ways to add charges, you should pay your balance and close the account. If the balance is more than you can immediately pay, look for another credit card that has low or no interest and low or no balance transfer fees. Then transfer the balance from the problematic account to the new account. Be aware that the interest rate and transfer fee on the new card may be introductory. If so, you will need to pay off your balance within the grace period to avoid increased charges.
