Avoiding credit card fees

Credit providers are very inventive with their fees, so you'll need to be crafty to avoid them. Here are Mozo's top 5 tips;

1. Always pay the minimum amount due on time.

At the very, very least, you've got to remember to pay this one. Failure to do this may result in the following atrocities:

• A fee (ranging from $10 to $40).
• Losing your interest-free period.
• A bad credit rating. (This one might sound obscure, but it'll come back to bite you.)

Mozo's handy hint: Arrange to have the minimum amount direct debited from your bank account.

2. Give your annual fee the flick.

Cards with rewards programs often have higher annual fees than regular cards and the benefits can be less than the fee! A free toaster might be more fun than sensible financial practice, but let's not give the banks the satisfaction of making off with our money.

Mozo's handy hint: Keep your credit cards to a minimum. More cards mean more needless annual fees

3. Resist the cash advance.

Most banks charge a fee for the pleasure of your easy money. Plus, cash advances attract interest immediately, even if your card offers a 55-day interest-free period on purchases.

Mozo's handy hint: Credit cards are for purchases only.

4. Have a second look at the supplementary cards.

Supplementary cards are a lovely gesture, but you'll get charged between $15 and $65 per annum. Why give it to the banks if you don't need to?

Mozo's handy hint: Use supplementary cards to get rid of credit accounts, not to expand your credit portfolio.

5. Never, EVER exceed your credit limit.

Overlimit fees (usually $35) will apply once you exceed your credit limit. Bad credit ratings may swoop down upon you.purchases.

Mozo's handy hint: If you're spending up a storm, check your credit balance.