How to Manage your Credit Cards

If you’ve been paying your credit card balance in full , you may not have worried about the new credit card fees, increases, and other fees. After all you pay your balance in full every month. But now, maybe that won’t help. Card companies are tired of not making anything on your account. They may soon charge a fee for people who pay in full every month.

The companies are constantly adjusting their fees, rates, penalties, and due dates. Late fees have tripled since the mid-90s with some card companies now charging $39 if you’re a day late.

Balance transfer fees are back. Switching to a low-interest account sounds like a good idea. But if you transfer $10,000 and there’s a 3 percent fee, it costs you $300.

Note that the average U.S. cardholder has 8.6 credit cards. If this cardholder, because of illness or some other reason, fails to make payments on eight cards in a given month, it could cost $312 in late charges. Then interest rates would rise dramatically.

Most companies have automatic payment plans that deduct the minimum from your checking account on the due date if a payment is not received.

Most companies offer online checking account deductions, an easy way to automatically make the minimum.

If you are generally on time with your payments and a late charge is added, call the company and ask to have it removed. Some companies will do it for you once or twice.

To avoid late payments, make a minimum payment as soon as a bill arrives and another payment later.

Managing your credit cards takes some effort, but it’s better than paying late charges and having your interest rate increased.