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