When you think about the cost of using credit cards, do you tend to stop at the interest rates and annual fees? Unfortunately there are many other fees potentially involved in having and using a credit card. One of the more substantial fees is the overdraft fee. That is a fee charged if you exceed your credit limit.

“Well, I just won’t spend more than my credit limit,” you might say. And that’s obviously a smart plan. But going to the store and charging a bit too much because you lost track of your expenses isn’t the only way an overdraft fee can sneak up on you.

Overdraft Fees a Direct Result of Overspending? Not Always.

You can be pushed over your credit limit not only based on your spending habits, but also by other credit card fees. Even if you diligently keep records of all of your charges you could face an overdraft fee if you forget to equally track any charges your credit card company adds to your account balance.

For example, if you generally run a high balance on your card and it has an annual fee, that annual fee could be charged automatically and push you over your credit limit in the process. That would result in another fee — the overdraft fee. Other fees can add to your charges if you aren’t careful about tracking them. Some other examples are reward programme membership fees (often charged annually), balance transfer fees, cash advance fees, and currency conversion fees if you shop internationally online or while travelling.

Tips to Avoid Overdraft Fees

All you really have to do to avoid overdraft fees — even the more unexpected ones — is to be cautious about spending and pay attention to your credit card’s terms and policies. Here are some quick tips to make sure you don’t get hit with overdraft fees.

1. Keep an eye on your balance and don’t overspend. Try not to keep a high balance at any time — leave at least 30% of your credit limit as available, but preferably more. Then you don’t have to worry about getting close to exceeding your limit, even with forgotten fees.

2. Mark your annual fee date on your calendar or PDA. Don’t let it surprise you each year. This is especially important if you’re not used to having an annual fee (because you took advantage of a temporary no-fee introductory offer).

3. Pay more than the minimum required each month. You want to keep your overall balance going down — not up. Better yet, pay off the balance in full each month and only use cards for long-term financing for rare special purchases, if at all.

4. Keep track of automatic payments (especially those that aren’t monthly because they might be easier to forget about). You might otherwise look at your available balance, make a purchase, and then remember too late that there’s an automatic charge coming that’s now going to push you over your limit.

Remember that credit cards are a big responsibility. You can’t afford not to know what’s going on with yours, whether that includes automatic payments or how other fees will affect your overall available credit limit. Monitor your statement carefully, and you can avoid overdraft fees and other surprises fairly easily.