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 4 student credit card 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 student bank account.

2. Give your annual fee the flick.

Cards with rewards programs often have higher annual fees than regular cards - and the value of 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 student 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: Student credit cards are for purchases only.

4. 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.

MOZO'S EVEN HANDIER HINT: If you're fast-approaching your credit limit, check out a balance transfer card pronto.

Okay okay, thank you for saving me all these heinous fees.

Now tell me how to manage my credit balance