How to Shop for Better Deals on Fees

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How to Shop for Better Deals on Fees

Because bank, credit card, and other consumer fees tend to fly under the radar, it is not always easy to avoid them. There is the tried-and-true method of picking up the phone and calling around to ask questions about bank, credit union and other fees.

You can also check the credit disclosures when you apply for a credit card online to see what kinds of fees you might be charged if you pay late, miss a payment, or do something like exceed your card limit. When you are buying a car, do some research in advance and ask the dealer to see the manufacturer’s invoice, so you can know which fees are legitimate and which ones are added to give the dealer additional profit.

In terms of rent-to-own and payday loan fees, the best way to avoid those fees is to avoid those products altogether. It is much more cost effective to save up the money to buy a big-screen TV or a new living room set or even put them on a credit card rather than go to a rent-to-own store. There are many alternatives to payday loans as well.

Online Fee Tools

However, there are some useful Websites that can help you if you are looking to avoid fees:

• Nerd Wallet’s Checking Account Tool: This site will screen banks for free accounts, out of network ATM fees and low overdraft fees.
• Bankrate.com’s Checking Account Tool: This site allows you to screen for Internet-only banks or local banks and will return results that show the minimum balance to avoid fees, any monthly fees, bounced check fees, and ATM fees.
• FindABetterBank: This site has a screening tool where you can specify the features you are looking for in a bank account and the types of banking activities you usually perform so that it can give you an estimated annual fee total.
• Creditcards.com: This site lets you screen for a variety of credit card offers. The initial results will summarize annual fees and interest rates and may disclose information on other fees, but you may have to look at the credit card disclosure when you apply or call the toll-free number to get all the fees.
• Kelley Blue Book: This site provides manufacturer prices for a wide variety of new and used car and truck models. When you have zeroed in on what kind of car you want to buy, get the prices so you can have better information to negotiate with the car dealer, which can help you avoid fees.

Other Ways to Avoid Fees

One of the best ways to avoid fees and the unpleasant surprise you get when you realize you’ve already been charged a fee that you could have avoided is with budgeting, getting better control of your bill-paying, and paying yourself first. Many bank, credit union, and credit card fees happen due to late payments or overdrawn checking accounts or last-minute decisions like going to an out-of-network ATM.

In the case of car and car lease fees, consulting a Website such as Kelley Blue Book or Consumer Reports (www.consumerreports.org) can provide information about the actual manufacturer’s price, so you can be in a better position to negotiate. Consumer Reports typically has the most detailed information, though you have to pay a fee to subscribe. With payday loans and rent-to-own stores, the best way to deal with those fees is to avoid such loans and deals entirely.

When you have control over your bill-paying by balancing your checkbook, scheduling your bills to be paid regularly online through your bank or an online bill-pay service, and having your paycheck deposited through direct deposit, it is much less likely that you will pay bills late, resulting in late or bounced payment fees. If there are fees that you know you will have to pay and can’t avoid, saving up for those fees and depositing that money in a special account will ensure that the money is available for that purpose when you need it.