Money-Saving Tips: How to Avoid High Credit Card Fees and Other Charges
Australia's Reserve Bank made rule changes in March reducing credit card surcharges. Credit card companies can now limit surcharges usually passed on by merchants to consumers who use their credit card for payment. As a credit card owner in Australia, you stand to save a lot of money due to the limited surcharge.
Some people know that they are charged with bank fees and yet they do nothing about it. This is your chance to find out how to reduce or avoid the bank fees from being charged to your account. Take the time and effort to learn the different types of bank fees and how much these are costing you.
What are bank fees?
One fee that banks charge their account holders is called an exception fee. Banks will charge you with exception fees every time you exceed your credit limit, make late payments or excess withdrawals. Bank accounts have a specific number of withdrawals per month. If you exceed the allowable amount, a corresponding fee will be charged to your account. By charging exception fees, banks gain extra income. Most of these charges are avoidable if you know what to do.
Watch out for exception fees
The first thing that you should do is look for a bank account that does not have exception fees. If you find one, confirm the non-charging of exception fees. This might be the account that will help you save money on bank fees. Ask your bank when direct payments are due. For your convenience, you may need to arrange for these payments to fall after your payday to ensure that you pay on time. This can be the day after you receive your paycheck so that you can instantly save some money.
Monitor your account
As much as possible, always monitor your bank account. Take advantage of the bank's online services by accessing your account through the Internet. It will be easier for you to retrieve your bank statement and see complete details of your transactions. Being aware of your bank transactions will keep you from incurring bank fees.
Pay your balance on time
Do not forget to pay your credit card balance on time to avoid being charged late payment fees. If you can't pay the entire amount, make sure that you pay at least the minimum amount. Although you have to pay interest fees if you choose this option, you just need to pay consistently to maintain a good credit history. A bad credit score means you were not able to fulfill your financial obligations. This will be an obstacle for you once you decide to obtain a loan from other financial institutions.
Bank fees are imposed because they also serve as penalties for those who continue to violate the terms of agreement. You must be aware of the possible bank fees that you may incur before opening an account. It will help if you talk to an accounts officer to get a more detailed explanation. Complying with credit card policies and paying dues on time will help you avoid paying bank fees.