Terms and Conditions
What is an annual fee?
An annual fee is the amount your credit card company charges you every 12 months just to own the card whether you use it or not. The fee can range from about $15 up to $300 and it is billed directly to your statement when it is due. When the twelve-month period begins and ends varies from card to card, so do not assume it starts on January 1 of each year.
Many cards come without annual fees, but that feature can change at any time. A card can start out not having an annual fee, but the credit card company can add one at any time (but they must tell you if they do). When you search for a credit card, be sure that you know what the annual fee is if there is one, and that the card is the best credit card for you.
It is definitely a tradeoff when it comes to fees and credit cards. You can find credit cards that come with an annual fee and good rewards or a good APR, or you can find cards with no annual fee, but with a higher APR and less rewards. It helps to look at the total picture when choosing the right credit card for you.
See also:
What fees do credit cards have?
How do I compare credit card offers?
What are the finance charges? How are they calculated?
Last update: 2006-09-25 16:36
Author: BKO
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