How to Avoid Hidden Credit Card Fees in 6 Steps

Understand how to avoid hidden credit card fees

Have you ever looked at your bill and noticed charges that you had no idea where they came from? If so, you’re not alone. The so-called hidden credit card fees catch many people by surprise.

These are amounts that, although they are included in the contract, end up going unnoticed in everyday life. But the good news is: with a little attention and organization, you can avoid them.

In this post, we’ll show you 6 simple steps to avoid these traps and keep your finances under control. Come read the content until the end!

1. Understand Your Contract and the Associated Costs

It may seem boring, but reading your credit card contract is the first step to avoid surprises. It lists all the fees that may be charged: annual fee, late payment interest, cash advances, emergency credit evaluation, IOF (Financial Transaction Tax), and much more.

If you don’t understand any term, ask the operator’s customer service or do some research. The more you know, the easier it will be to make informed decisions.

Tip: choose cards with clear transparency policies and, if possible, without an annual fee. There are many options on the market that offer this.

2. Be Careful with the Minimum Payment

The temptation to pay just the minimum amount on your bill is strong when money is tight. But this habit can be expensive. By doing this, you enter the revolving credit cycle, one of the highest-interest credit options on the market. In just a few months, your debt can double.

Avoid paying only the minimum, and if you’re tight on cash, try negotiating installment payments with the operator, they usually have lower interest rates than revolving credit.

3. Avoid Cash Advances with Your Credit Card

Many people don’t know, but withdrawing cash on credit (also called emergency credit) is expensive. Not only do you pay daily interest from the moment of the withdrawal, but you also incur IOF charges and a transaction fee, which varies from bank to bank.

Whenever you need cash, consider other options, such as loans with lower interest rates or even using the overdraft (with caution, of course).

4. Keep an Eye on Additional Services

Some credit cards offer “benefits” like insurance, assistance services, and rewards clubs. The problem is that many of these services are automatically activated, and the charge appears on subsequent bills as a recurring fee.

Carefully read what is included with your card. If you don’t want these services, contact the operator to cancel them. A good example is the loss and theft insurance for your card, useful for some, but unnecessary for those who already use apps with instant blocking.

5. Use the Bank’s App to Your Advantage

Many people only see their bill when it arrives, but banking and operator apps allow you to track your spending in real time. This way, you can spot unauthorized charges or unexpected fees as they happen.

Set up purchase alerts and review your statement weekly. With this habit, you’ll have time to dispute any suspicious charges within the deadline and avoid paying for something you don’t recognize.

6. Cancel Cards You Don’t Use

If you have cards lying around in a drawer, thinking “I might need it someday,” be careful. Even inactive cards can accumulate fees, such as an annual fee or additional services.

The ideal is to keep only the cards you actually use day-to-day. Having too many cards increases the risk of losing control and missing small charges.

Conclusion

A credit card can make your life easier and even provide benefits like miles or cashback. But for that to happen, you need to use it wisely. Hidden fees often go unnoticed, but they’re not inevitable. With these 6 simple steps, you can take control and avoid paying for things you don’t need.

Remember: knowledge is power. The more you understand the details of your card, the more protected you’ll be against traps and unexpected charges.

So, which of these steps do you already follow? Do you have any tips to avoid fees that you’d like to share? Leave a comment!

Written by

Juliana Raquel