Below are our top tips to avoid paying unnecessary additional funds to your credit card lender in the form of fees and charges.

1. Avoid using your credit card’s cash advance facility. Make sure you keep enough cash in your savings account to avoid the emergency cash advance. Getting a cash advance on your credit card will see you slapped with a significantly higher fee than the fees associated with purchases. It’s also important to remember that the typical cash advance interest rate p.a. on even the best Australian credit cards is likely to be around 20% and cash advances usually do not have interest free days. Avoid the cash advance at all costs!

2. Whenever possible pay the balance in full when you receive your monthly statement. This will prevent a fee being charged for late payment, and will save you money on interest rates that come into effect after your interest free days. Where you are carrying a large balance that can not be repaid in full; you should seriously consider transferring your outstanding balance to a low interest rate credit card.

As a means of acquiring new customers some banks offer special introductory offers like 0% interest balance transfer credit cards. Many Australian consumers are starting to take advantage of 0% interest credit card introductory offers, and transfer outstanding balances to another 0% interest card just before the honeymoon period is over and the account is due to revert to the standard or variable interest rate.

Of course it is beneficial as you can either access a 0% interest credit account at will or it will help you significantly reduce your credit card debt; as long as you continue to make the regular repayments expected of a high interest rate card.

3. Be certain to make your payments to the card issuer on time. Make or send your payment a day or two early whenever possible to ensure that you are not charged late fees. The payment processing time often takes longer than anticipated.

Unbeknownst to many consumers an online payment may take up two working days to clear from a bank account. It’s especially important to be aware of this when making a payment to your credit cards accounts on a Friday, or during a long weekend. Pay as early as you can and avoid the unnecessary expense of late fees!

While the tips above should be of some help in avoiding fees known to credit card users, there are some others that are more frequently overlooked:

Dishonour fees are some of the highest fees to be incurred. If you are uncertain as to whether or not your savings or cheque account has sufficient funds to cover your repayment, don’t send or approve the payment until you are. Making purchases from international merchants may seem like a bargain; be that online or whilst traveling, however these can often see you hit with additional fees for currency exchange and you should always factor this in before you make the purchase.

Remember to read your credit card issuers terms and conditions and seek clarification if necessary. In order to keep unexpected additional fees to a minimum it’s essential to know what you will and won’t be charged for.