Is Your Credit Card Charging You Any Of These 9 Fees Dave Ramsey Warns You About?

You should check the fine print of your credit card statement to find out.

Credit cards can make purchases easier since you can charge things instead of carrying cash for purchases. If you use cards responsibly by not charging too much and paying them off in full, they can also help you to build credit and allow you to earn valuable rewards.

But, cards can also cost you money -- especially if you end up getting hit with added fees that card issuers sometimes tack on. Finance expert Dave Ramsey warned of nine common fees you could end up having to pay when you have a card, and it's worth checking if you're currently covering any of them.

Nine fees to watch out for

The nine fees that Dave Ramsey warns about include:

1. Annual fees: Ramsey asked, "Did you know you can get charged just for the 'privilege' of having a credit card?" He explained that not all card issuers charge these, but some do. And he warned that sometimes a fee is waived for the first year but kicks in after.
2. Late fees: These are charged if you pay your bill late. As Ramsey explains, the CARD Act limits the first over-the-limit fee to $28 and allows subsequent fees to go as high as $39 if you're late a second time within six months.
3. Balance transfer fees: You'll pay this fee if you transfer a balance to your card. "You'll get charged a percentage of the amount you're moving over," Ramsey explained.
4. Cash advance fees: If you get cash from your credit card instead of just charging purchases, cash advance fees are typically tacked on. Cash advances can also cost you more for another reason as well. "Unlike other purchases, cash advances don't have a monthly grace period," Ramsey explained. "That means they'll start tacking on interest the moment the cash is in your hand, not just when the billing cycle is up. Talk about a punch in the gut!"
5. Over-the-limit fees: If you exceed your card's credit limit, Ramsey says you may be charged this fee, although not all cards assess it.
6. Expedited payment fees: Ramsey says some card companies charge you if you make an expedited payment because you're worried your payment won't arrive on time.
7. Foreign transaction fees: As Ramsey explained, these fees can be charged both while you're abroad as well as when you purchase something from a seller who doesn't charge in U.S. dollars.
8. Returned payment fees: If your payment is returned due to insufficient funds or other problems, Ramsey says your card company will typically charge you to return your payment.
9. Card replacement fees: Finally, a lost card can also lead to added fees.

As Ramsey explains, there are so many fees because "credit card companies love to nickel-and-dime people." So, since it's your money on the line, it's important to be aware of what you're being charged and to make sure you protect yourself from these added costs.

How to avoid unnecessary credit card fees

Take these steps:

• First make sure the fee is really unnecessary. In some cases, for example, annual fees are worth paying if your card comes with generous rewards and perks that exceed the value of the fee. And balance transfer fees can be worth paying if doing the balance transfer saves you more on interest than you pay upfront.
• Set up automatic payments to avoid late fees and expedited payment fees.
• Avoid taking out cash advances, which can be very expensive and are usually unnecessary.
• To avoid over-the-limit fees, don't max out your credit cards.
• Look for a card that doesn't charge foreign transaction fees if you're going abroad.
• Keep your card in a safe place so you don't need to have it replaced.

Now that you're aware of these fees, you have the tools you need to make sure you don't get stuck paying them. There's no reason for your card to cost you more than necessary, so heed Ramsey's advice and steer clear of cards with unnecessary charges.