Loans and credit cards often come complete with high fees and occasionally hidden charges it pays to be aware of. Here are a few things to watch out for and what you can do if you believe you have been charged less than fairly.
Late Payment Fees
Making loan or credit card repayments late or missing them completely usually incurs late payment charges. In addition to costing you up to £15 at a time, this can also have a negative impact on your credit rating. The best way to ensure you never miss payments is to ensure they are affordable to you in the first place and to set up a direct debit to your loan or credit card company.
Returned Payment Charges
Making sure there are always sufficient funds in your bank account to cover cheques and direct debits by budgeting carefully is vital, as returned direct debits or ‘bounced’ cheques could cost you anything between £5 and £12 at a time.
Exceeding Credit Limits
In a similar way, you should ensure you know your credit card balance at all times, as exceeding the credit limit could also result in extra charges of up to £12.
Cash Machine Withdrawals
Credit card purchases typically have interest-free periods. Withdrawing cash from a machine with your credit card, on the other hand, is highly likely to incur a minimum level percentage fee (typically around £2 to £3), as well as accruing interest (the rate of which is usually higher than the rate applied to card spending) from the day you withdraw the cash. The simple solution to avoiding these charges is to refrain from making cash withdrawals.
Hard as it may be to believe, some card companies will charge customers for not using their cards. Generally referred to as dormancy fees, these charges can, depending on the Card Company, range between £2 and £20. Checking terms & conditions before applying for credit cards and cancelling unused cards help to avoid dormancy fees.
Fees for using Cards
Many outlets charge customers for using a credit card to pay for their purchases. Often not announced until the payment process is more or less complete, such charges could consist of a set fee of £2 to £3 or more. In some cases, the fee consists of a percentage of the amount paid with the card. Using a debit card for purchases under £100 is often helpful in avoiding these charges.
Applied when credit cards are used abroad, this charge is added to the current exchange rate by banks, often leaving exchange rates less than favourable. Fees for cash withdrawals made abroad can be even higher. Loading fees often do not appear on credit card statements, so make sure you are not paying over the odds by checking your card agreement’s terms & conditions and, if necessary, looking for a different card.
There are no hidden charges with short term loans from Uncle Buck. We have no set-up fees, and while we do have a late payment charge, you will be informed of this and the amount you will be expected to pay in case of late payments before taking out a loan with us. Naturally, it is recommended to avoid late payments by ensuring you can afford to always make your repayment on time. Learn more about our services and products by visiting our Website or calling us on Tel.: 01959 543 400 (Call charges may vary depending on your phone provider. Calls may be monitored for security and/or training purposes).