November 4, 2009
-
Becoming Savvy About CC Fees, Pt.3
The double whammy.Here's a credit card fee that can really catch you by surprise; the cash advance fee. The cash advance fee gives you a double whammy. Not only will you be charged each time you visit the ATM for cash with your credit card, nearly every card contract charges a higher interest rate on cash advances. The usual fee charged by most lenders is 3 percent of the amount of the cash advance. If you use an ATM that is not owned by your credit card company, you will receive a triple whammy as most financial institutions charge an ATM fee if you are not a member of their institution. Save yourself some cash by checking with your lender to find out exactly what that cash advance loan will cost you in the long run.
Unsolicited credit card checks can cost you more than you might expect. Most of these checks carry a check access fee that can be the same as or equal to a balance transfer fee. New legislation will prohibit lenders from mailing out these checks unless you have agreed to it. These checks often bring higher interest rates as well. High interest rates and hidden check access fees make these checks a bad idea. You will save yourself some money if you shred these checks and notify your credit card company and tell them you do not want to receive any checks in the future.
Merchant agreements with Visa and MasterCard prohibit merchants in the U.S. from charging an additional fee for accepting payment of credit card. If this occurs, talk to the merchant to clear the charge. Lastly, overseas and foreign currency purchases can also bring hidden fees. Most lenders will access a 2 or 3 percent surcharge for currency exchange. Before making any overseas transactions, ask the merchant if they accept payment in U.S. dollars. Be aware that some lenders have also changed he definition of “international” in contract terms to include any overseas purchase regardless of whether it is in U.S. dollars or not.