Your bank account may have leaks that drain your hard-earned cash if you’re not careful.
Many costs, just like death and taxes, are an inevitable part of our lives and our wallets. Yet many fees are easily avoidable and should be avoided whenever possible.
Here are some of the most common:
Interest on credit cards
Avoiding credit card payments can be a slippery slope and interest charges can add up over time. The best course of action with credit cards is to pay down your balance each month if possible.
Some companies will charge you a fee if you don’t pay a set amount when making a purchase. These small fees can add up over time, so try to bring cash with you for these small transactions.
Credit application fees
There is no reason to pay any amount of money to check your credit score. By law, all citizens can get a free credit report once a year, which has actually been increased to once a week until the end of 2022. AnnualCreditReport.com is where you need to go. return to get free reports from credit reporting agencies Equifax, Experian, and TransUnion.
Withdrawing money you don’t have from your checking account can incur hefty fees of around $35. This will happen for every overdrawn trade in your account, so it’s something you want to catch early.
You can turn off the overdraft fee and ask your bank to simply decline the transaction, or call your bank to see if you can waive the fee. Some banks like Citibank waive these fees altogether.
Checking Account Fees
Always be sure to read the fine print and see if your account requires a minimum balance or has other fees.
Late payment fees
A late payment can mean not only fees, but also an increase in your interest rate and a mark on your credit score. A good idea is to always have reminders to pay your bills and never miss a payment.
Planning ahead will ensure that you never have to throw money at an ATM again. Locate your bank’s ATMs in your area or choose a bank that offers free ATM transactions.
Money transfer fees
You should never have to pay a fee to send money with any app that offers this service for free. Apps like CashApp, Venmo, and Paypal let you send money for free, but make sure you don’t get impatient. They will let you pay a fee to access your money faster, but that just wastes money.
While not necessarily a “fee”, paying monthly for services you don’t use is just wasting money for no reason. Go through your account and see what recurring charges occur for things you no longer need.