Maria Adams, Credit Cards Moderator
@m_adams
No annual fee means you will not be charged every year for using your credit card. This means you’ll save anywhere from tens to hundreds of dollars in annual fees, depending on the credit card.
What you should know about credit card annual fees:
- Annual fees are often tied to high-end rewards cards, travel rewards cards, business cards, in addition to cards for people with limited and bad credit. The annual fee helps the issuer recoup the costs of rewards and benefits the card offers.
- There are a number of no annual fee credit cards that offer rewards such as cash back or rewards earned on purchases. But you will need good credit or better to qualify for most of these cards.
- A good go-between is a credit card that waives the annual fee for the first year you have the card. After the first year, the fee will be charged to your account, unless you close the account before that happens. But doing so could have a negative effect on your credit score. You might also lose any unredeemed rewards.
Whether you should have a no annual fee card depends on your spending habits and preferences. If you’ll earn enough in rewards to warrant the cost of an annual fee, it might be worth the investment. But if you know you won’t make too many purchases over the course of a year, your best bet would be to stick with the no annual fee card.
Popular No Annual Fee Credit Cards
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Cash Back
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Bonus Cash Rewards
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Travel
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0% Intro APR
Nick M, Director of Sales
@nick_fmcr
One of the most persuasive points in favor of keeping a credit card with no annual fee is that it doesn't cost anything to keep in your wallet year after year. Just make sure it's considered an active account by using it for a small purchase every couple of months.
No annual fee means you will not be charged every year for using your credit card. You'll save anywhere from tens to hundreds of dollars in annual fees, depending on the credit card.
People also ask
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If you want to switch to a credit card with no annual fee, you should know how much you’ll save by making the move. This may require a little math on your part, as calculating savings isn’t always as simple as deducting the cost of the original annual fee card. In some cases, you may come out ahead by sticking with your current card and paying the annual fee. This will depend on both cards’...
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The best credit card with no annual fee and no foreign transaction fee is the Regions Prestige Visa® Signature Credit Card because it rewards you with 1 - 3 points per $1 spent on purchases. You can also earn 10,000 points after spending $500 or 20,000 points after spending $1,000 in the first 90 days....
read full answer by Lisa Cahill, Credit Cards ModeratorWhat is an annual fee on a credit card?
A credit card annual fee is the minimum cost of keeping the account open for a year. It helps the issuer afford any rewards or promotional financing the card may offer as well as general account services, such as billing and customer support.
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read full answer by WalletHub, Financial CompanyDid we answer your question?
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