Finding Hidden Credit Card Fees

Charges For Not Carrying a Balance?

One of the most ridiculous credit card fees I have heard of is when credit card companies charge cardholders for not carrying a balance. Yes, it's true. A monthly charge if you don't carry a balance on your card.

Make sure your credit card company doesn't charge a "minimum finance charge" each month. If they do, you're going to be paying finance charges even if you don't use the card or pay it off in full each month.

Late Payment Penalties

Another one of the hidden credit card fees I don't agree with is the Universal Default Clause. This is what credit card companies use to raise your interest rates even if you've never made a late payment to that particular credit card company.

How does it work?

Let's say you have five credit cards. One of your monthly statements got lost and you now have a late payment on your credit history. Suddenly, all of your other credit card companies are raising your interest rate. This is the universal default effect.

The Double Whammy

Sometimes hidden credit card fees are out there in the open, but you just don't realize they can hit you all at once. Confused? Let me explain.

You mail in your payment on time, but the credit card company doesn't get it till the day after the due date, so you're slammed with a late payment penalty. This isn't where it ends, however. If you were close to your credit limit before, that penalty may put you over your credit limit, incurring an over-the-limit penalty too. Then, on next month's statement, you notice your interest rate is going up because of the late payment and because you went over your limit. Not a pretty situation?

Remember, hidden credit card fees are meant to make the credit card companies money. Keep your eye on them and keep your money where it belongs -- in your wallet.