Most of us are paying annual fees for our creidt cards. That’s what many credit card issuers require for. But what exactly is this annual fee and what are some special benefits that credit card with annual fee could provide?
First of all, not all credit cards have an annual fee. A significant amount of credit cards does not require their customers to pay for any annual fee.
Credit card with annual fee often provides extra benefits in order to attract its customers. With annual fee, many special rewards are offered to customers. For example, free flights, free nights at luxury hotels and so on. Generally, the higher the annual fee, the more benefits the credit card provides.
Credit card with annual fee is also known as a high-end credit card that serve for people with special business needs or people who travel a lot.
Since an annual fee increases the cost of holding a credit card, you should carefully consider whether to have it. If your benefits that gets from the credit card are less than your annual fee, you are losing money when holding this credit card.
The annual fee often charges in a specific month. The annual fee is usually between 100 dollars to 200 dollars. Credit card company has the duty to inform you their annual fee policy and the price of the annual fee. If they wants to change the annual fee, they should inform you at least 45 days before the new annual fee becomes effective.
Pay attention, credit card company will charge you an annual fee whether or not you are carrying a balance on your credit card. In other words, you must pay for the annual fee in order to keep using this credit card.