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Annual Fee

Updated on April 8, 2024 , 3721 views

What is Annual Fee?

An annual fee is charged automatically once a year by the credit card provider to your account so that you can keep your card account open. This is the common credit card fee. Annual fees are the amount you pay for the benefits and various features that come along with the credit card.

Annual Fee

Not all credit cards have an annual fee, but ideally higher annual fee comes with more benefits of users.

How is the Annual Fee is Charged on a Credit Card?

The annual fee is a one-time fee charged on your credit card during a specific month of the year. The charge will be deducted on the day you open the card or at the beginning of the calendar year. Some credit cards divide fees and assess them monthly, but it is common for banks to charge the annual fees once a year.

Credit card issuers are legally required to reveal the annual fees when you sing for the card.

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Which Credit Card has Annual Fees?

Generally, reward credit cards, premium credit cards, Secured Credit Cards, etc., comes with an annual fee.

How to Avoid an Annual Credit Card Fee?

If you think that the annual fee on the credit card isn’t worth, then you can close the account. But you should make sure to assess the impact on your Credit Score. Redeem any rewards you have accumulated and check if you can issue a new credit card with the same issuer.

Ideally, switching to another credit card will allow you to avoid an annual fee. Downgrading your account may prevent you from earning any rewards.

All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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