The best part of having access to a credit card or many cards is the ability to leverage your good name for some purchasing power that doesn’t need to be backed up by actual funds. The downside of credit card use is when you end up running into those pesky credit card charges. Nobody likes paying more than they have to for access to credit, and it’s the charges that can really get you in over your head quickly if you aren’t aware of the worst charges that you could face.
Re-Occurring Charges: Consider it a membership or a penalty, the card issuer will call it a cost of doing business for their client. You have to decide what level of charges or fees you deem appropriate for the type of freedom, flexibility and benefits a particular credit card offers in exchange for your having to pay those fees.
Cash Advance Fees: Credit cards are intended to facilitate purchases more so than they are intended to be instruments for procuring cash. Cash and credit are two very different types of financial instruments and they usually have two very different types of use. For those reasons and many others, credit card charges are often associated with accessing cash advances from a credit card. While not unusual, it is very important to be aware of this fact before having a ball at the ATM machine with your new card.
Using the Card Overseas: Certain card types will waive international charges for use outside of your home country, but that is definitely the exception and the chances are that the card in your name will charge a rather hefty fee for normal card usage, but when enacted on foreign soil. This problem can be avoided by traveling with cash or money orders.
Whether you run into one of the common credit card charge culprits listed above, or if you’re experiencing a fee or charge not discussed — if it’s excessive, you might want to consider closing that account if you can transfer the balance away to another account with a better set of terms and conditions. This type of final decision would definitely require the proper level of financial consideration and deliberation before making any drastic and high-ticket final choices.