Let’s face it, having a credit card is not at all bad. It’s how you handle your credit card that makes the big difference. If we take a look at the statistics, many college students had to face credit card debts and even bankruptcy because of credit card misuse. Those high interest rates and credit card late fees can really put you in a bad debt situation in an instant. But there is a way to avoid that credit card trap. In this article, let’s discuss the strategies that students and other credit card holders can do to avoid paying additional credit fees and charges.

How to Avoid Credit Card Fees and Charges

Choose a credit card with reasonable terms. The first thing to do is find the right credit card. Don’t get too excited on sending out credit card applications online. Before you even decide to fill out a credit card application, you should be well aware of the costs and that you really want that particular credit card in your wallet. How do you know if it’s the right one for you?

Take the time to read the fine print. The credit card ads won’t exactly tell you the true rates and costs of the card. The ads only reveal what it wants customers to see- low interest rates, attractive rewards, no annual fees, etc. However, the real terms and conditions are disclosed in the credit card agreement. If you’re not patient enough to read and understand the agreement, you could end up with the wrong student credit card in your wallet.

Do not maximize your credit limit. You run the risk of accumulating debts if you more than 40% of your credit limit. Financial experts recommend not going beyond 40 to 50% of your given credit. Even if your student credit card offers a low interest rate, it is still wise not to maximize your credit limit.

Do not be content with just the minimum payment. Sure, it’s okay for your credit card company that you submit only the minimum payment each month. But that’s because each time you do, you incur the additional interest rate fees in your account. A wise credit card holder should make it a point to pay off his entire credit card balance in full each month. This way, you avoid not only the interest rate, but the late fees and other charges as well.

Submit your monthly payment on or before your due date. Submitting your monthly payment even one day late would already cost you the late penalty fee. Therefore, you should be aware of your payment deadline and pay off your balances as early as possible. In fact, don’t wait until the final day of your payment due date arrives. The earlier you pay off those charges, the safe you would be from paying the additional credit card charges.

Don’t use your credit card for cash advances. No matter what you do, don’t use your credit card for taking out cash. If you need cash, you might as well borrow from your parents. Remember, cash advances are not part of the grace period so you instantly incur the interest rate fee for cash advances.