Credit cards often charge an annual fee which can range from $15 to $500 depending on what type of card you are using. Credit card holders are encouraged to compare credit cards before they apply for any new cards. It is best that before you apply for a credit card to ask how much you are going to pay for your credit card’s annual fee and why is there a need to pay for it. Can it be waived? Do you have to pay the annual fee during the first year? Before you sign that credit card application, make sure that you fully understand the fees being charged to you, the benefits, and rewards you can get.
Compare Credit Cards – Say No to Annual Fee
Banks have different policies and the cost of annual fee may vary. If you are not sure which credit card provider you are going to sign with, you can always compare credit cards. This is one way to assess which among the credit card providers charge minimal annual fee. You’ll be surprised that not all credit cards charge an annual fee. On the other hand, premium, secured and reward credit cards typically charge annual fees. This is part of the cost of having credit cards. The credit card annual fee is a one-time payment commonly charged at the beginning of the calendar year, during your card’s anniversary, or it can also be divided monthly.
You can avoid paying the annual fee by switching to another bank which does not charge any annual fee. Often times, credit card providers waive the annual fee during the first year and automatically starts to charge the following year. You have to assess if the fee is worth it or not so you can look for other options. You may switch to a different card but with the same provider. However, downgrading it may cause you a little trouble. You may no longer incur rewards and lose other benefits. Switching to other credit card providers may pressure your provider into keeping you as their client. This time you can negotiate to waive or reduce the annual fee without cutting the benefits.
If your credit card provider has a plan to raise the annual fee, you should be notified 45 days before the date of implementation. When you have decided to switch from one credit card provider to another, make sure you redeem the points to avoid losing them. Don’t hesitate to ask your credit card issuer about the annual fee and how you can avoid it. Compare credit cards and choose the one that can offer you the best deal.