When it comes to the financial world, you are always somehow faced with fees after fees! It’s almost like they are out to get your money, aren’t they? In all honesty, they are! So the question is, what financial fees are unavoidable and what financial fees should you avoid?
In this article, we’re going to save you some money! Here are the Top 5 Financial fees you should avoid and save yourself some money
1. ATM Fees
The first on the list is one of the most ignored by most. ATM fees are usually incurred when you withdraw cash from an ATM that is not part of your bank. For example, if you bank with CHASE and you withdraw cash from a U.S. Bank ATM, they will charge you withdrawal fees.
Now, I know the fees might not seem like a lot, but if you withdraw frequently, these fees add up. Withdraw fees typically range anywhere from $2 to $5, depending on the ATM.
To avoid this fee, always stick to ATMs that are part of your bank. If you bank with larger banks, they are everywhere and easy to find. Just plop it into Maps on your phone, and find your nearest one.
2. Credit Score Reports
If you want to take a look at your credit score, this is something you shouldn’t have to pay for. There are free services out there like Credit Karma that let you sign up for free and monitor your credit score from all 3 credit bureaus.
You can also use AnnualCreditReport.com once a year to check your credit. This service allows you to get a comprehensive credit report every year for free.
3. Creditor Late Fees
If you have a credit card, personal loan, car loan, etc, then you know that they charge late fees when payments are not made in time. Usually, credit payments are due at the end or beginning of every month. If your loan is late by a week or two, they may charge you late fees.
When a creditor charges you late fees depends on their policies and agreement with you. Some charge late fees immediately, some charge a few weeks in, it just depends. The amount varies, such as a percentage of the amount owed, or a flat fee.
If you can, set reminders and money aside to pay back loan payments on time. Not only are you paying interest, but you want to also avoid paying late fees on top of that.
4. Credit Card Cash Advance Fees
When you use a credit card for everyday purchases, you are only charged interest on the balance owed if carried over the month. When you borrow cash from the credit card, you are also charged cash advanced fees! Avoid these like a plague!
Cash advance fees are very expensive. Depending on what you are wanting to pay for, it might be much cheaper to get a personal loan than a cash advance from a credit card. Avoid these and instead, try to make the purchase directly from the card.
5. Overdraft Fees
Overdraft fees are charged when you withdraw or use more money than what is in your account. When your balance goes negative, the bank often charges you overdraft fees. Depending on your financial situation, this might be harder to avoid if you are living paycheck to paycheck. Avoid this one as much as you can.
The idea here is to keep tabs on your accounts and ensure that you don’t spend more than you have. Having a budget is one way to avoid overspending and not incur these fees. Fortunately, a lot of big banks are starting to eliminate or reduce overdraft fees!