Many people don’t realize that annual credit card fees are often charged by issuers. By understanding when these fees are charged, you can avoid them.
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What is an annual credit card fee?
An annual credit card fee is a charge that cardholders pay each year for owning and using a credit card. The fee is typically a flat rate, although some cards charge a percentage of the cardholder’s total credit limit. The average annual fee for a credit card is $110, although some cards charge as much as $550 per year.
When do you pay your annual credit card fee?
Your annual credit card fee is usually charged at the end of your billing cycle. For example, if your billing cycle is from January to December, your annual fee will be charged in December.
How do you pay your annual credit card fee?
Most credit cards will charge an annual fee, which is typically paid in full when you first open the account. However, some cards will allow you to spread the cost of the fee over the course of the year by adding it to your monthly statement. If you choose this option, you will need to make sure that you have enough credit available to cover the additional fee each month.
What if you don’t pay your annual credit card fee?
Your credit card issuer may waive your annual fee if you:
-Make a certain number of transactions within a certain time period
-Spend a certain amount of money within a certain time period
-Have a good payment history
-Are a longtime customer