It seems that banks and credit card companies have gotten greedy, increasing their fees whenever and wherever they can. But you don't have to pay high fees for banking, credit cards or loans. Greg McBride, CFA, senior financial analyst for the consumer Web site Bankrate.com, tells how to dodge balance-transfer fees when switching to a lower-interest credit card... the best way to avoid ATM surcharges... and how homebuyers can get mortgage closing costs waived.
What you should never avoid, however, is your regular dental checkup. According to Alan Winter, DDS, periodontist and associate professor of dentistry at New York University College of Dentistry, it might save your life since cancer, heart disease, diabetes and osteoporosis are all connected to oral health... and often your dentist is the first to see the early signs of these diseases.
All the best,
Outrageous Fees...
Greg McBride, CFA
Bankrate.com
he fees really add up -- bank fees, credit card fees, loan fees, real estate fees and car rental fees. As a consumer, you get dinged at every turn, it seems. Some of these charges may appear to be reasonable -- while others are clearly outrageous. But you can beat the system if you know how... BANKING AND CREDIT CARD FEES
Fees charged by
banks and credit card companies have skyrocketed in the last several years. Some of the worst...
Doubled-up ATM fees. When you use a machine that belongs to a bank other than the one that issued your ATM card, your bank may charge you a fee (usually $1.25 per transaction), and the owner of the ATM will charge a fee, as well ($1.64 on average).
It's common for banks to charge $2 or even more at ATMs in airports, hotels, sports venues and other places where they know you are under pressure to find cash.
Self-defense: Know your bank's policy regarding ATM fees. Use your own bank's machines or national ATMs -- machines within a national surcharge-free network, such as Alliance One (866-692-6771, www.allianceone.coop) and Freedom ATM Alliance (412-261-8146, www.freedomatm.com) -- where there are usually no fees.
Check my company's Web site, www.bankrate.com, for the best ATM fees.
Balance-transfer fees. If you move your credit card balance to another card to obtain a lower interest rate, the new card company can charge you a fee.
Example: Bank of America charges 3% of the balance transferred.
Self-defense: Use a credit card company
that has no fees for balance transfers and low interest rates.
Examples: Capital One (888-810-4013, www.capitalone.com) has no balance-transfer fees on most cards... Wachovia (800-922-4684, www.wachovia.com) exempts new customers from balance-transfer fees.
Credit card late and over-the-limit fees. Your credit card company may slap on a fee for paying late or for charging beyond your credit limit, even if your payment record is otherwise perfect.
Example: Providian charges a $39 late fee to any customer with a
balance of $200 or more who misses a payment deadline, and $39 to those who exceed their credit line by 2% or more.
Self-defense: To avoid these fees...
Mail your credit card payment 10 days to two weeks before its due date... or if you pay on-line, a few days before it's due.
Ask to have your payment date moved so that the bill arrives right after a paycheck.
Contact your issuer and arrange automatic on-line payments. Citibank, MBNA, Discover, American Express and others have on-line sign-ups to do this.
Pay by phone at the toll-free number on the back of the credit card (there may be a charge from $5 to $15 for this service). The amount will be immediately withdrawn from your bank account and you'll receive a confirmation of the transaction by mail.
What to do: Ask your issuer to waive the fee -- many will do so as a courtesy to customers with good payment records.
Biweekly mortgage payment fee. The "magic" of a biweekly (every two weeks) mortgage payment is that you end up making the equivalent of 13 full mortgage payments in a year rather than the usual 12, reducing the time needed to pay down the mortgage and cutting interest payments substantially. But a biweekly payment plan from a bank often includes an up-front
fee of several hundred dollars and monthly fees of about $10.
Self-defense: Instead, make extra principal payments with each of your regular monthly mortgage payments. You'll accelerate the payoff and reduce interest as much as you want to with no extra fees (assuming your mortgage allows this).
REAL ESTATE FEES
When selecting a home, the key is location, location, location, but at closing time, the key is fees, fees, fees...
Closing costs. When shopping for a mortgage lender, consider not only the interest rate but also closing costs. By law, you'll receive from the lender up front a "good faith estimate" (GFE) of closing costs. This is an itemized list of estimated costs to be paid at closing (e.g., the lender's fees, appraisal charges, title insurance premium, a partial month's
interest payment).
Self-defense: Apply with three different lenders and compare their GFEs. Filling out applications takes some time, but it costs nothing to apply -- and you could save thousands of dollars. Use the free search engine at Bankrate.com. Then try to get fees waived or reduced or credited toward closing costs. The lender may not budge -- but it's worth asking.
Have your GFE reviewed by an attorney or other professional well before the closing.
The privately run National Mortgage Complaint Center (866-714-6466, www.nationalmortgagecomplaintcenter.com) will review it and tell you about any excessive fees. Cost: $45.
Note: Banks should charge the buyer what they paid in appraisal, credit report and inspection fees. Often, they mark those fees up. Ask the lender to seek good deals on these items and pass along the savings to you. It may not -- but it doesn't hurt to ask.
Title insurance. When you get a new mortgage or refinance an old one, you must buy title insurance to protect against such problems as forgery of old title documents and potential interests of missing heirs. The premium is paid once and averages $800.
Self-defense: In some states, such as Texas, premiums are fixed by law. If the premium isn't fixed in your state,
search under "title insurance" on the Internet or check the Yellow Pages. Call the companies to ask about their rates and coverage. If you're refinancing your mortgage and have lived in the house less than 10 years, ask to get title insurance at the less expensive "reissue" rate.
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Your Dental Visit Can Save Your Life
Alan Winter, DDS f you think that regular dental exams are just for your teeth and gums and aren't very important, you could be putting yourself in danger. Dentists are able to identify signs of a variety of serious diseases that affect other parts of the body. Recent finding: About 78% of periodontists (dentists who specialize in the diagnosis and treatment of gum
disease) have referred patients age 60 or older to be evaluated for diabetes, and 21% have made referrals for osteoporosis, according to a poll conducted by the American Academy of Periodontology. All dentists are trained to identify these diseases and others. How can an oral exam yield such crucial health information? While you're sitting in the dentist's chair to be treated for tooth or gum problems, your dentist is also checking for signs of cancer and other diseases. By monitoring
changes in your gum tissue, your dentist can look for oral manifestations of diseases or other serious health problems. Adults should get dental exams at least twice a year, or three to four times if they have gum (periodontal) disease. During a thorough exam, a dentist inspects all the soft tissues, including the gums, tongue, palate and throat, and feels (palpates) the patient's neck and under the chin. Signs of possible health problems include ulcerations, thickened tissue,
pigmentation changes and abnormal color or consistency of gums and other soft tissues. No one should consider a dental exam an adequate screening of overall physical health. However, your dentist can serve as a valuable adjunct to your other doctors in helping to spot signs of serious medical conditions. CANCER Dentists can spot possible malignancies that form in the gums, palate, cheek or other soft tissues. They also can identify tumors in the jawbone, which
either originated there or metastasized (spread) from the breasts, bones, lungs or elsewhere in the body. Warning signs: A newly formed lesion (open sore) or bump anywhere in the mouth that doesn't go away after seven to 10 days... swelling of the gums... teeth that suddenly become loose... and/or nonspecific oral pain that doesn't seem to be related to a tooth problem. Less commonly, a cancerous lesion in the jawbone may be seen on an X-ray, but many people who
have cancer that has spread to the jaw are already being treated by an oncologist or surgeon. On rare occasions, a dentist may be the first to identify such a metastasis. Self-defense: If you have a bump or lesion that doesn't heal in seven to 10 days without treatment, see your dentist. He/she will decide whether you should see a specialist, such as a periodontist, oral surgeon or ear, nose and throat specialist. Important:
Although some bumps and lesions are cancerous, most are benign and due to canker sores, routine gum problems, root canal problems -- or they are the result of trauma, such as hitting your gum with the head of your toothbrush. To reach a proper diagnosis, your dentist will do a thorough examination, get a detailed medical history and may even take a biopsy. DIABETES Periodontal disease develops over a period of years. If a dentist sees gum breakdown that is more
rapid than expected or there has been extreme bone loss that can't be explained, diabetes should be suspected. Warning signs: Poor healing after oral surgery, inflammation in the gums and other periodontal problems. These may be signs of diabetes or diabetes that is not well controlled. Such problems can occur because diabetes suppresses the immune system, which impairs the infection-fighting function of white blood
cells. Self-defense: If your dentist suspects diabetes, you should see your primary care doctor or an endocrinologist for a glucose tolerance test. OSTEOPOROSIS Most people associate osteoporosis with bone loss in the spine or hips, but it also can occur in the jawbone. Warning sign: On an X-ray, the jawbone will look less dense than it should. Self-defense: Follow up
with your primary care doctor. A bone-density test may be needed. Caution: Bisphosphonate drugs, such as alendronate (Fosamax), have been linked to osteonecrosis of the jaw -- death of areas of jawbone. Most reports of this side effect are associated with bisphosphonates taken intravenously by cancer patients whose malignancy has spread to their bones, but a handful of cases have involved people who took the oral form of the medication. A LINK TO HEART DISEASE Contrary to what many people believe, dentists cannot diagnose heart disease based on the appearance of a person's gums. Much has been written about a possible link between gum disease and heart disease. However, the research that showed a connection was retrospective -- that is, it reviewed the characteristics of a particular group. One such study was conducted by Robert Genco, PhD, of the State University of New York at Buffalo, and
colleagues at the University of North Carolina at Chapel Hill. The researchers noted that cumulative evidence supports -- but does not prove -- an association between periodontal infection and cardiovascular disease. In a recent Finnish study, people with gum disease were found to be 1.6 times more likely to suffer a stroke. Additional research is needed to determine whether gum disease is, in fact, a risk factor for cardiovascular disease. In the meantime, it makes sense to keep your
gums healthy to help minimize the possible risk for heart disease. Studies have shown that people with heart disease are more likely to smoke, not exercise regularly and/or have poor diets. Dentists often send people with diagnosed heart disease for a cardiovascular evaluation. Reason: These patients need to get medical clearance for dental surgery. During these evaluations, the cardiologist checks the patient's blood pressure, use of blood thinners and
overall risk for heart attack and stroke. A cardiovascular evaluation also helps determine which anesthetic to use -- an additive used in some anesthesia can stimulate the heart.
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