Many people choose a credit card because they were attracted to the card’s best features highlighted in the ads. The Federal Law prohibits credit card issuers from charging fees to their clients unless these fees have been disclosed in the contract. However, not many cardholders take the time to read the fine print.

In this article, let’s discuss examples of fees that your credit card could be charging you without your knowledge. These are often costs hidden in the small print of your credit card agreement.

Late fees
Penalties for late payments can be a real burden for credit card holders. Why should you pay more than the real value of your purchases when you can save from these costs by simply submitting your payments on time?

Excess Credit fees
Over-the-limit fees usually range from $39 to $49 and up. Cardholders are advised to keep their spending below 40% of their credit limit. Exceeding your limit also puts you at risk of bad debt and can dramatically hurt your credit score.

Credit cards with no grace period
The grace period gives a cardholder the chance to pay off his balances without the additional interest. The ideal length of grace period must be at least 25 days to 30 days from the date of purchase.

Increasing charges
An introductory promo is usually what attracts consumers to sign up for a card. But how much would the interest rate be when the introductory period expires? Be sure that you are clear about this important detail before sending in your credit card application.

Surprise changes
Your current low credit card fees can change at any time after you signed up for a card. Credit card companies only give a 15-day advance notice to their clients before implementing the changes in their fees. Make sure that you check your monthly billing statement and other notices sent by your credit card.

Also, check if your current card imposes “universal default clause”. If so, your APR can suddenly increase if you are late in submitting payments to other creditors, even if you’re always on time with your payments to your credit card.

Clearly, reading the Terms & Conditions of a credit card is a must. Understanding all the costs associated with your card can save a great deal of trouble

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