Many credit card companies charge outstanding fees when you use your card with them in foreign countries. Of course, there are other fees just for the privilege of using your credit card, but it’s important to understand what these fees are.
The foreign transaction fee may be different for each credit card company you see listed on your credit card report. Because of the varying exchange rates these companies may have between various currencies, and you may see fees up to one of either of these two currencies, depending on how close you are to the exchange rate in the credit card agreement. Your credit card company will mark your purchases on the statement as foreign and you pay them customs fees and possibly additional charges like processing fees.
There is usually also an application fee paid for any goods and services you send back from your overseas destination. These fees make up about half of the fees listed above, and make up almost 50% of the total amount you pay in fees for any of your transactions.
By paying your transaction during the grace period of your credit card agreement, you are actually clearing a balance on the credit card balance that you owed in order to cover your outstanding monthly payment. Being on a slightly higher credit limit doesn’t mean you’re paying off your balance; you just might be paying off the entire balance and keeping that debt for the rest of your life!
Make sure your credit card company doesn’t flag your purchases in any other markets such as the US or Canada, where the fees are considerably higher. They should be low enough to allow you the opportunity to shop for foreign currency without carrying amounts over several years without incurring any finance charges.
While credit card companies try to avoid paying any fees at all if you decide to keep your credit card on an unpaid balance for a few months, if you find yourself once again finding that you might not be able to clear the amount at all should you decide to do so, you might want to put that credit card on its official statement and get one that has no fees or other fees imposed.
What Does A Prepaid Credit Card Mean?
If you are like most of us, you probably have a debt.
A debt is a huge pile of money that prevents. If you want to know what it is, start by looking at your credit limit. Then take out a copy of your credit report and ask yourself if it is really necessary to pay any of the credit amounts on it. Each of us has a credit limit like that and I would strongly recommend you not borrow more than you pay back. You do not want to incur debt if you don’t have the money to pay back.
However, you do need to weigh the small amount you can afford against your debts and make sure that you pay them when they come. That way you aren’t accumulating unnecessary bills on your own rather than paying for it yourself.
Remember, the more you owe the more interest you have on what you’re using your credit as a portion of maintaining a credit card. If you have a bad credit history there are credit cards that will charge you higher interest if the credit card company is claiming you need to pay back a portion of the balance.
There is no permanent solution to paying back all of your debt, but there are ways for you to be successful with your current credit card habits.
1. Find a way to pay off each credit card balance each month. So by doing this (and paying off what you owe in full with a standard monthly payment) you will avoid paying higher cards interest.
2. Pay off the balance of all the credit cards as your first card with a standard monthly payment, which will lower overall balance by 25-35%.
3. Get a card with a low fixed APR from American Express and a low grace period. The grace period is the interest that you are paying in the amount of time you have without payment increasing at all.
4. Cut out the cards that not very many people charge you the fees for, which again will cut down on the payoff time.
5. Get rid of cards that have more than one card. If you have two or more card companies or one may be two companies or it may have three.
6. Try to get rid of cards you are not good to keep, that have low APRs that cannot be kept on a longer term deal for less than what you owe.
7. Avoid using cards that offer to pay for the time you have left in paying for the loan, which will increase the interest payments you will pay.
If you can’t afford to pay back one or more of the balance transfer cards that are out there that don’t require a payment to send you to a pay off list, then you may be in for a surprise if you get a new credit card offer.