Avoid Credit Card Fees

In UK, the credit card providers charge their customers everytime the credit card is used irrespective of the use. So if you are using your credit card for withdrawing cash from an ATM or for purchasing grocery, the moment the card goes under the swipe, you will be charged. The charges vary with each transaction and you may be charged more for ATM cash withdrawal and less for buying medicines. Hence it is important to compare credit cards on the websites before you apply for one. So how can you avoid this unasked for fee charged by UK credit card providers?

Most of the times, you will be using the ATM to withdraw cash using your credit card. You will be paying a fee to withdraw the cash and also there’s a interest on the withdrawn amount, which is applicable from the day of the withdrawal. Some cards charge 1.5% while some charge 2.2% but you can find that out from compare credit cards websites. Some UK banks will even charge you interest for withdrawing money using your debit card, which might look annoying. The only way you can save on the interest charged on transaction is by using a free ATM. The problem lies in the fact that it is not mentioned on any of the ATM’s that you will be charged for withdrawing cash. So you need to take the initiative and find out if you will be charged for withdrawing money from a particular ATM or not.

One of the biggest problems with UK credit cards is annual fee. There are some card companies who offer free membership for the first year but from the next year, you will have to pay an annual fee while others don’t charge any annual fee for a lifetime. The only way to find such a card will be through compare credit cards websites.

Most credit cards in UK are accepted in Europe and Internationally. Now the problem is that everytime, you use your card abroad, you will be charged. Whether you are purchasing something or hotel reservations, car rentals or withdrawing from an ATM. If you do it abroad, then the fee charged will be quite a sum. You can end up paying almost £100 for every £1,000 you spend using the credit card. So you need to choose a credit card that doesn’t charge you such a high rate and this you can find compare credit cards websites.

If you have a credit card, then avoid late payments. If you make a late payment once then you will end up paying a higher rate of interest on the amount overdue. Try to make a minimum payment each month. Another thing you should never do is over draw on your card as then you will have to pay penalty charges. Of course, there are ways of claiming back your penalty charges. There are many ways of minimizing the interest, the annual fee and even the late payment charges in the UK credit card or debit card, all you have to do is find the right card.