SavvySugar

How Your Zero-Balance Credit Card Could Cost You

SavvySugar — Thu, 29 Oct 2009 12:00:59 -0700

Think you’re avoiding extra fees by being savvy and paying off your credit cards in full every month? Maybe not any more. Some companies, including Bank of America and Citigroup, may start charging credit card holders for not using their cards enough. Good habits like paying off your balance in full, not using your card for a few months, or even not spending quite enough every month could all earn you extra fees.

Credit card companies have just a few short months before new regulations go into effect, and they appear to be getting desperate. Card holders have seen everything from higher interest rates to new annual fees over the past few months, as companies scramble to stay ahead of the restrictions that'll go into effect in February.

If you start seeing these fees, you do, of course, have options. You can call the company and complain (although there’s no guarantee they’ll listen; remember the Debtor’s Revolt woman?), move to another company that doesn’t charge these fees, or cancel your cards altogether. What do you think of these proposed fees? What will you do if your credit card starts charging them?

Airport Scales May Lie About Your Overweight Luggage

SavvySugar — Fri, 04 Sep 2009 15:06:33 -0700

You probably wouldn't demand a do-over on the scale at the doctor's office, but an inaccurate weigh-in there wouldn't cost you a dime. When it comes to weighing your luggage, however, an airport scale that's off can be costly. It's times like these when requesting a re-do makes sense for your bottom line.

Budget Travel comes right out and says that airport scales often lie. Scales at several major airports aren't properly calibrated, which means passengers are paying hefty fees for overweight luggage when their bags aren't actually too heavy. Brandon Macsata of the Association For Airline Passenger Rights recommends that passengers weigh their bags at home first; if the airport scale seems off, ask that your bags be weighed on a different scale.

Will You Pay $10 to Board Your Southwest Flight Sooner?

SavvySugar — Thu, 03 Sep 2009 12:00:46 -0700

Known for its fee-free ways and lack of assigned seats, Southwest has added an unexpected upgrade option that's got people talking. The Early-Bird Check-In costs $10 one-way and buys passengers a spot in line behind Business Select and elite-level frequent fliers but in front of everyone else, including families with small children.

Regular Southwest passengers are used to checking in 24-hours before their flights to score a place in the "A" group and board the plane first, but the new Early-Bird option - available 25 hours before takeoff- might put a snag in these expectations. Southwest's officials say paying the extra $10 might land you a place within the first 30 people to board, but there are no guarantees.

I'll be interested to see how this new option plays out. Would you play $10 to board the flight in the first group?

Would You Welcome a Charge For Carry-On Bags?

SavvySugar — Mon, 31 Aug 2009 06:30:47 -0700

Without fail, every time I'm on a plane I witness a flight attendant shoving someone's over-sized carry-on into the overhead compartment. Checked luggage charges are pretty much unavoidable (unless you fly Southwest), and passengers are trying to skip the extra fee by jamming as much stuff as possible into the biggest carry-on bags. I appreciate the fact that people are trying to save the cash, but I'll admit, the practice does get under my skin when it starts eating up everyone's loading and unloading time.

Passengers aren't going to stop bringing luggage and there's not much left for airlines to place additional fees, so there's speculation that carry-on bags will be the next target. Some passengers might welcome the charge which could create a smoother experience overall, while others would undoubtedly take offense to this type of fee.

Avoid These Silly Bank Fees and Save

SavvySugar — Tue, 07 Jul 2009 12:00:23 -0700

You're a pro at avoiding ATM fees and finding free checking, but banks are slapping fees on everything from your standard withdrawal at another bank to helping its customers. Yes, that customer service call could come with a charge. Banks are relying on fee income more than ever, so don't be surprised if your institution starts sticking you with a tab for checking your balance.

The Wall Street Journal identifies 10 fees you should keep an eye on, and while it mentions that you might have some luck asking your bank to waive a fee you catch on your account, wouldn't it just be easier to avoid them in the first place? Two of the fees listed by the WSJ stand out as particularly silly - $2 to $4 fees for visiting a bank teller more than a couple times a month, and $0.50 to $5 for making account inquiries or reordering checks over the phone.

Find out if your bank charges for any of these services; it's relatively easy to dodge them once you're aware. You can take care of most banking business online and make deposits through your bank's ATM.

Travel Tip: Remember to Factor in a la Carte Airline Fees

SavvySugar — Mon, 06 Jul 2009 12:00:53 -0700

The introduction of a la carte fees by most major airlines over the past year has gotten mixed reactions. Many customers are peeved at having to pay extra for everything from a checked bag to a blanket, while others point out that the unbundled fee structure means you don’t have to pay for services you don’t use.

Whatever your feelings on a la carte fees, remember to factor them in as you bargain-shop for flights this Summer - what seems like a steal can quickly turn into a ripoff as fees rack up. Next time you get ready to book a flight, refer to this handy chart from USA Today to keep airlines' extra charges straight and make sure you're getting a real bargain.

Does Your Credit Card Charge an Annual Fee?

SavvySugar — Fri, 03 Apr 2009 11:30:46 -0700

There are plenty of cards out there without annual fees, so if your card charges one make sure the reward returns are worth the expense. Does your card charge a fee each year?

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Better Use Your Visa Gift Card ASAP to Avoid Fees

SavvySugar — Tue, 10 Mar 2009 11:30:30 -0700

Out shopping this weekend, I happily remembered a prepaid Visa gift card I'd received months ago was nestled in my wallet. I called customer service to find out if a pin had been established, because I'd had the card for about six months and couldn't recall setting one up. The Visa representative gave me instructions for using the card and then told me my balance was $95 - but the card was given to me with a value of $100.

When I asked where the $5 went, I was told a fee goes into effect after the card is inactive for a certain period of time. The advantage of giving a Visa gift card is that it should work like cash. It seems very sneaky to me to punish someone with a fee for not spending soon enough, and makes me wonder if other gift cards have similar policies. Does it make sense to you that an inactive gift card would go down in value?

Some Bank Fees Have Outpaced Inflation

SavvySugar — Tue, 28 Oct 2008 04:00:01 -0700

A newly released Bankrate study about checking account fees found that the associated fees have reached an all-time high. ATM surcharges increased 11 percent from just last year, going from $1.78 to $1.97, fees for bounced checks rose 2.5 percent to $28.95, and monthly service fees on interest bearing accounts increased from $11.72 to $11.97. According to Greg McBride from Bankrate.com, "Fees have been going up for years. Some of those fees have outpaced the rate of inflation."

The fees may keep going up, but we can sit on the sidelines unaffected by the hikes if we're smart. If your bank doesn't absorb ATM surcharges, stick to your own bank's ATM by planning ahead, or just get cash back at the store. Ideally your checkbook is balanced so that you don't bounce checks, but getting overdraft protection connected to a savings account can prevent expensive bounced check fees. Most interest bearing checking accounts pay very minimal interest anyway, so you're probably better off forgoing the interest to avoid maintenance fees that usually come with these accounts.

Money Tip: Check a Hotel's Fine-Print Before You Book

SavvySugar — Thu, 16 Oct 2008 12:30:44 -0700

We saw this one coming. The travel industry has been hit by the economy - people are traveling less because their expenses up and jobs aren't as secure as they used to be, and gas prices have caused airlines to barely stay in business. Hotels are a main component of the travel formula, and they're beginning to express their hardships in the form of fees and fine print.

Some hotels are imposing cancellation policies that entail giving notice weeks before a scheduled stay, and the penalty for canceling after the given date may result in a charge for the total stay. Paying for an unused hotel room? How frustratingly expensive. Before you book an accommodation, be sure to ask about their cancellation policy and make note of it if you go through with making a reservation.

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