Four Fees You Shouldn't Pay on Your Credit Card

1. Annual fee
There are so many rewards credit cards available today that don't charge an annual fee, you shouldn't pay for one unless you want to, this is one of the four fees you should not pay. In rare cases, it might be worth it, for example if you're paying for a premium travel credit card that offers travel vouchers and free baggage. But you should always do the math first to figure out if the rewards you'll earn exceed the cost of the annual fee. If not, move on to another card.

Read the fine print carefully when signing up for a new card. The annual fee may only be free or discounted for the first year, but then a standard fee kicks in the second year. Please review the cardholder agreement for annual card fees, including any promotional fees.

You may be able to negotiate a reduced annual fee with your card issuer, or even eliminate it entirely. But card issuers don't have to agree. If you've had the card for a long time, you can use their loyalty as leverage and threaten to switch to a different credit card if they don't comply. Be prepared to follow through on that threat if your card issuer denies your request.

2. Foreign transaction fees
You may incur foreign transaction fees when you use your credit card in a foreign country. This commission is usually 3% of the transaction and you will pay it each time you use your credit card on your trip. It is possible to accumulate quite a lot if you are not aware of these fees and it is one of the four fees you should not pay.

Most of the best travel rewards credit cards do not charge fees for foreign transactions, so choose one of these cards if you plan to travel abroad. Check the cardholder agreement on your existing credit cards if you're not sure if they have foreign transaction fees. Another option to avoid these fees is to rely primarily on cash while abroad. However, it's still a good idea to have a credit card as a backup, in case there's an emergency or you run out of cash.

3. Interest
Everyone knows that if you don't build up an unrepayable balance, you'll never pay a penny in credit card interest. However, that knowledge isn't especially helpful if you already have credit card debt. In this case, you can still avoid paying interest temporarily – and possibly forever – by using a balance transfer card.

These cards have an introductory APR of 0% for six to 21 months. Pay your balance within this term and you will not have to pay more interest. Balance transfers usually have a fee attached to them, often a percentage of the balance you're transferring, but this option is probably more affordable than sticking with the interest you're currently paying.

If you are unable to pay the balance in full within the initial APR period, your remaining balance will begin to accrue interest at the standard APR, unless you transfer that remaining balance to another balance transfer card.

Read more: Is your name dirty? Keep in mind that there is now a credit card without consultation

4. Late Charges
Late payments can hurt your credit, and they also come with late fees, which can make your balance harder to pay. Your card issuer may charge you up to $28 for your first late payment and up to $39 for any additional late payments. But you can easily avoid these charges if you always pay your credit card bill on time. If possible, set up automatic payments or remember to pay the bill before the due date.

The only things you need to worry about when paying are the purchases you charge to your credit card. Read the cardholder agreement before signing a new credit card and make sure you understand all associated fees. Then choose and use your cards responsibly to avoid four fees you should not pay.