Having a credit card is very useful since it allows you to buy things that you need without having to come up with the cash first. In the event that you’re in the shopping center without some cash in your wallet, you can at least charge it first and pay later. Although credit cards provide us with a lot of convenience in our daily routines, it has its own setbacks. What is that? It is credit card hidden charges. When you are billed every month, you pay the credit card company or bank. You are paying for the amount of the items or services that you use your credit card to purchase. However, there are times when you will see some strange charges that you can’t put your finger on. Here are the top 3 credit card hidden charges that you may encounter and how to avoid them.
Overseas Transaction Fee
Whenever you go abroad and buy something, or if you buy online from an overseas store, there will be two types of fees that you have to watch out for. These are the foreign transaction fee and the dynamic currency conversion fee. Firstly, the currency conversion fee will come from your credit card converting the foreign currency to US dollars and back to Singapore dollars. This conversion charge is usually 1 percent charged by the card company. There will also be a 1.5 to 2 percent bank admin fee.
What can be done to afford this? Well, the best way to avoid costs like this is to not use Singapore dollars when shopping overseas or online. You can also get a CIMB Platinum Mastercard that allows you to waive the admin fee on foreign transactions.
Annual Fee
All credit cards would have a small annual fee that is regularly charged. Although you might find it to be a rather annoying fee, what most people don’t know is that you can actually waive it after you get your credit card bill. All you have to do is call the credit card company and waive it.
Cash Advance Fee
You can actually withdraw cash using your credit card from the ATM machine. This is known as getting a cash advance. Doing this though, would incur some really expensive charges. The interest rates that go along with the cash advance would reach up until 30% depending on the bank or credit card company. You would also be charged 6 percent of the cash advance amount or 15 Singapore dollars, whichever is higher. The interest rate of the cash advance, if not paid, is the 30%. The only way to handle this is to not withdraw cash using your credit card.
In conclusion
These are some of the credit card hidden charges that come along with having a credit card. Before you even get your card, it’s good to study all the fees that come along with it so that you’ll know what you should pay and what can be waived. As long as you know all of these, then you won’t have to worry about credit card hidden charges.
Quick Credit Pte Ltd is the top licensed moneylender in Singapore. Being in operation for more than 15 years has help us to gain valuable experience. This in turn has help us to serve you even better.
With the experience and knowledge, our staff are all well trained to handle any situation you may be in. If you need any financial assistance, get in touch with us. Our loan consultants will be happy to assist you. They will also be able to provide you with not only cash but also advice on what you can do next. To reach us, you can drop us a message at enquiry@quickcredit.com.sg. Alternatively, you can call us at +65 6899 6188. If you like, you can also drop by our office at 2 Jurong East Street 21 #04-01A/B IMM Building Singapore 609601 for a free consultation.
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