Most of you probably have one or more credit cards. Most of you probably use them frequently. These cards that you have also have many fees associated with them. There are late fees and high interest rates that negatively affect you. However, these negative aspects of cards are based on your own behavior. You have the opportunity to avoid late fees by paying your bill on time. Also, you have the ability to avoid high interest fees by keeping your credit card balance low. While these two fees can be minimized or avoided, there is one fee that is unavoidable: credit card annual fees. Credit card annual fees are charges of anywhere from $25 to over $300 that are applied to your account, simply for having the card in your possession. You might not even use the card anymore, however, if your account is still open with the credit card company, you are still subject to the annual fee.
The amount of the credit card annual fee is often times based on the type of card it is. Some cards might not even have an annual fee. Cards with particularly high interest rates often do not have an annual fee, or if they do have one, it is relatively small. Companies with high interest rates tend to make their money on interest and don't necessarily need to charge an annual fee, which could attract consumers to their card.
The cards with the highest credit card annual fees are typically rewards credit cards. These cards attract consumers with the opportunity to earn points or rewards based on how much they use their card. Users of these types of cards can often earn gift cards, products, or even airline tickets, based on their credit card usage. Since these companies provide these rewards, they usually charge a higher annual fee to help compensate for it. In many cases, the credit card annual fee offsets the reward for the average card user.
It is important to remember that as long as your account is open with a company, you are still responsible for paying the credit card annual fee. So, if you have multiple cards, you might want to consider getting rid of the ones you use less, or the ones that have a higher annual fee. If there is any good news with credit card annual fees, it is that the fee is usually kept constant from year to year. At least 45 days advance notice must be provided to users should a company decide to raise their annual fee.
With some companies, there are ways around the credit card annual fee. You could try simply asking the company to waive the annual fee, which believe it or not, might actually work. However, if they do waive the fee, be sure that it is the only change made to your account. Companies could raise your interest rate if you have them waive the annual fee. While this might be an acceptable change to you, just be sure you know all of the facts before deciding anything. With some credit card companies, you might be able to meet a certain number of minimum or "qualifying" purchases each month/year in order for them to remove the credit card annual fee.
Credit card annual fees are a part of the credit industry and it is important to know the facts about them so you can hopefully save some money. Credit cards can be a dangerous tool if you don't use them properly. Many people have fallen into credit card debt.