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4 Surprising Credit Card Fees and How to Avoid Them

By U.S. News & World Report

Failing to read a credit card’s terms and conditions before you apply can cost you money. Plain and simple.

Sure, reading that document is about as exciting as watching paint dry, but the fact is that it contains information you need to know before you use the card. Now, it won’t tell you everything you need to know — for example, it may give you a range of possible APRs (say, 12.99 percent to 21.99 percent) rather than telling your exact rate — but it will give you a lot more information than you’d find in an ad.

Much of that information is about fees, including annual fees, late payment fees and balance transfer fees. However, those are far from the only ones.

A recent CreditCards.com survey of 100 popular credit cards showed that the average credit card comes with six different possible fees. Of those 100 cards, only one had no fees: the Pentagon Federal Credit Union Promise Visa card, which doesn’t even come with a fee for making a late payment. On the flip side, two cards from First Premier Bank — which markets to those with less than perfect credit — come with as many as 12 possible fees. Several other cards featured nine possible fees.

So what are these fees?

Here’s a look at some of the most unusual fees we found in our survey and how you can avoid them.

Credit Limit Increase Fees

Get your credit limit bumped up? That can cost you.

First Premier’s terms and conditions, for example, include the following: “Each time your credit account is eligible for and approved for an unsecured credit limit increase, a credit limit increase fee in the amount of 25 percent of the amount of the credit limit increase will be assessed to your credit account.”

So if you get a $100 credit increase, you’ll have to pay $25 in fees. Fortunately, First Premier cards typically feature low credit limits, so any increase likely would be small. However, it’s still something you’d rather avoid. Do that by not requesting a credit limit increase on a card with that fee — and rejecting the increase if the issuer offers you one without you asking for it.

Pay-By-Phone Fees

If you frequently pick up the phone to pay off your credit card bill, you might want to reconsider.

Nearly 1 out of every 10 cards surveyed included this fee, which typically cost $10 to $15. The good news: This fee is easy to avoid. Pay online or just send a check instead.

Account Reopening Fees

There’s more to closing a credit card account than calling the issuer and cutting up your card, and this fee can force people to learn that the hard way.

Automatic bill payments are most likely to trigger this fee. Say you just cancelled a credit card. If you don’t also cancel all of the automatic bill payments going to and from the card, it can lead to a card account being reopened, whether you want it to or not. These back-from-the-dead accounts are often called zombie accounts and can lead to you being hit with a fee of about $25. Nearly 1 in 10 credit cards surveyed included this fee.

How do you avoid it? Keep track of how many automatic bill payments you have set up for your credit cards, and be sure to account for each one of them when you close that card.

Paper Statement Copy Fees

It’s easy to get a copy of a recent credit card statement through your bank’s website these days. If you need your issuer to send you a paper copy of an older statement, expect to pay a bit. About 1 in 3 cards surveyed had some sort of fee for hard copies of statements. How much you pay, however, depends on how old the statement is. Some cards charge the fee only if the requested statement is 13 months or more old. Others charge a small fee for statements less than 25 months old and a slightly larger fee for those that are older.

Sometimes this fee will be unavoidable. If you need that statement and there’s no other way to get it, you might just have to pay it. However, it might be worth asking the issuer if they’d waive that fee for you. If you’ve been a good customer, they just might do it.

Remember: It never hurts to ask…

That last point is an important one that far too many people overlook. You have much more power with your credit card issuer than you realize. For example, a CreditCards.com survey last year of nearly 1,500 adults showed that only 28 percent of credit cardholders had ever asked to have a late payment waived, but a stunning 86 percent of those who asked were successful. That means many people are paying late fees that they probably don’t have to. The same survey showed that only 23 percent of people had asked for a lower credit card APR, but 65 percent of those who asked for one got one. And if that many people are successfully getting those requests granted, it’s reasonable to assume that your odds of getting more obscure fees waived is pretty good, too.

To make the request, call the 800 number on the back of your card. Tell them, if it’s true, that you’ve been a loyal customer with a strong credit history, and you were hoping they could give you a break on this fee. Be polite but direct. Chances are that you’ll like the bank’s response.

More from U.S. News

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4 Surprising Credit Card Fees and How to Avoid Them originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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