Avoid penalty fees on credit cards

In order to avoid penalty fees on credit cards, it’s important that you do not miss any payments and stay within your credit limit.

Late fees are usually applied when you fail to make a payment on time and currently most credit card providers charge £12 each time you fail to make a payment by the due date.

One easy way to avoid late fees is to set up a direct debit. Even if this only covers the minimum payment, you’ll still protect yourself from these fees if you forget to pay on time.

Another penalty fee you can incur is an over limit fee. You’re likely to be charged £12 again by your credit card provider if you exceed your agreed credit limit. It’s important to keep an eye on your expenditure, as these fees can mount up into hundreds of pounds if you’re not careful.

If you have found yourself paying lots of penalty fees it is possible to reclaim them.

Alternatively, if you don’t think you can do this on your own it could be worth getting a claims company to do it for you. If you choose this route, take Martin Lewis’ advice and don’t pay any upfront fees for a service like this.