The Truth About Annual Fees And Credit Cards
Most people don’t like to pay fees. Whether it’s a surcharge on a ticket purchase, a parking ticket, or an extra charge to check a bag on a plane, fees can seem unnecessary, irritating, and downright unfair. But there’s one circumstance when paying a fee can actually be a good thing.
That’s right: some fees are worth paying. And one of them is the annual fee for a credit card. Of course, it depends on the credit card. So read on to find out when you should, and shouldn’t, pay an annual fee for your credit card.
Many folks only apply for credit cards with no annual fee. And there are certainly plenty of those cards available: cards that offer cash back, purchase protection, and even frequent flyer miles without charging a fee to cardholders. So why would anyone apply for a card that does charge an annual fee?
The answer is in the fine print. Many travel credit cards, especially those which are issued in partnership with another company – known as co-branded cards – offer extraordinary rewards, such as concierge service that’s available 24 hours a day, seven days a week, reward points that are worth a free round-trip airplane ticket, free stays at luxury hotels, admission to exclusive airport lounges, and more.
If you’re looking for an elite credit card, particularly a travel credit card, you’ll want to consider cards that do charge an annual fee. Many of them waive this fee for the first year you have the card, and give you a generous sign-up bonus as well, making the deal even sweeter.
The trick is to really look at the details of the card you’re applying for. Study the terms and conditions so you know exactly what’s offered and what fees you’ll be charged. In some cases, a credit card that charges a high interest rate will also charge an annual fee. These cards are generally for people with less-than-great credit who might have trouble being approved for an elite rewards credit card.
If you’ve got good or excellent credit, take advantage and apply for a credit card that offers a low APR and high value rewards. And don’t shy away from cards that charge an annual fee, because in some cases, the fee is well worth paying.
Latest Credit Card Fees Guides
Paying a yearly fee of $450 or even more for a credit card might sound crazy to some people. After all, there are so many credit cards available with no annual fee: why would anyone pay hundreds of dollars just for a credit card?
If you’ve ever been slapped with a credit card fee, you know it’s no fun at all. You can incur a fee for making a late payment, getting money out of an ATM, buying something with your card overseas.
When money is tight, it’s good to have a few tricks up your sleeve for painlessly saving money. Everyone has heard the old advice about making coffee at home and skipping the fancy latte on the way to work, packing your lunch, and cutting back on little luxuries like new clothes ...
Generally, we can accept that paying fees is something most people don’t want to do. Bank fees, penalty fees, usage fees, processing fees—there are too many fees that crop up from day to day.
Can you perform magic? When your credit card statement reveals that you’ve been charged a fee, you might wish you could.