Comments on: Killer Credit Card Fees and How to Avoid Them

By: Kirk

Kirk — Sat, 19 Jan 2008 01:53:28 +0000

I concur with Debt Free Revolution that Capital One should be avoided like the plague. I use to work at the Motley Fool, which has a great discussion board on credit cards. They were universally hated and had zero tolerance for helping their customers.

The best way to use credit cards is to pay them off automatically each month. You can float your purchases for 20-45 days by using them, which improves cash flow, but you must avoid paying interest.

By: Mrs. Micah

Mrs. Micah — Thu, 17 Jan 2008 23:23:55 +0000

Great list, Patrick, I added it to my roundup. Of course, there’s also that one credit card of death…I can’t remember who puts it out but it’s positively awful.

It might be this one, the Visa Aspire:
http://tinyurl.com/25qjgf

By: David

David — Thu, 17 Jan 2008 23:00:23 +0000

Great article, thanks Patrick. I am sure a lot of people will get some good use out of this one!

By: deepali

deepali — Thu, 17 Jan 2008 22:25:50 +0000

perhaps a good rule of thumb is that you shouldn’t have/use a credit card if you can’t pay it off every month. then you can avoid the rate-jacking, universal default clause, late fees, etc. and of course, don’t even bother getting a card with an annual fee.

and if you go over your limit, you definitely shouldn’t have a credit card.

you know, it’s kind of like owning a gun. if you’re just going to shoot yourself in the foot with it, is it really a wise idea to have one?

too bad we don’t learn these lessons until after the fact.

By: CiaranFromChance

CiaranFromChance — Thu, 17 Jan 2008 20:52:53 +0000

And I’m one of those people that doesn’t pay attention, although after reading some of these blogs, its hitting my radar.

I do pay off my cards in full though. And like most people, I’ve developed a healthy disdain for credit cards companies in recent years.

By: Patrick

Patrick — Thu, 17 Jan 2008 20:36:55 +0000

Money Blue Book – auto payments are a great way to prevent that problem.

My Dollar Plan – I agree 100%. I won’t apply for them either. Unfortunately, a lot of people just don’t pay attention!

By: My Dollar Plan

My Dollar Plan — Thu, 17 Jan 2008 20:23:19 +0000

None of my cards have annual fees. If a card has one, I don’t apply.

By: Money Blue Book

Money Blue Book — Thu, 17 Jan 2008 19:22:17 +0000

Certainly reward credit cards are great but it’s important to pay them off promptly to profit from them. I personally use automatic debit to ensure that.

By: Patrick

Patrick — Thu, 17 Jan 2008 17:56:31 +0000

paidtwice, that was the impression I had as well. I believe you have to close the account and continue paying your old rates. I’m not sure what happens at that point though -whether the balance is due in full, or you can pay on the old schedule. Either way, the card companies don’t like to play nice .

By: paidtwice

paidtwice — Thu, 17 Jan 2008 17:53:36 +0000

PS: You could only opt out of the rate increase DFR is talking about by closing your account. Credit card co’s generally have the ability to raise your rate whenever for whatever reason they feel like, even “we just felt like it”.