It’s a pretty simple rewards card, but Capital One, the issuer, designed it for people with about average credit (you may be approved even with poor credit scores, depending on other factors).Īnd, of course, you can also find unsecured cards with no annual fees for average credit.
A good example is the Capital One QuicksilverOne Cash Rewards Credit Card ( Review), which has a $39 annual fee. There are regular, unsecured credit cards with annual fees that are meant for people without the best credit. The, for example, allows you to apply and fund your deposit without a bank account if you apply at a physical Citibank location. Why would you pay a fee, when there are other options? You might want to because the card you’re looking at offers some special feature you need. It has no annual fee, and actually offers some cash back rewards along with the opportunity to improve your credit scores. The Discover it® Secured ( Review) is our pick for the best secured card. Some cards will waive the annual fee for the first year, giving you some time to see if you’ll use the card enough for it to be worth it. Premium travel credit cards tend to have the highest fees.
People with good or excellent credit who are looking for rewards and benefits that are better than averageĪnnual fees range from the fairly small, like $49, to the very large, like $550 or more. People with bad or limited credit who need a card with an annual fee because they can’t be approved for anything else. We’ll go over each of these reasons a bit, with examples showing how cards with annual fees can be worth the cost.Ĭredit cards with annual fees are good for two basic types of people, with different credit histories and credit scores: A downgrade path (product change): Some cards allow you to downgrade to a lesser version, with the same account history and credit line but fewer rewards and benefits. Special card features: It has a particular feature that you need, like the ability to transfer points (the Chase Sapphire Reserve® ( Review) is a great choice for that). 
Valuable travel perks: There are travel benefits that you want, like free hotel stays, airport lounge access, or membership in hotel and airline loyalty programs. 
A large introductory bonus: It has a big signup bonus for spending a certain amount in the first few months of account opening. Offset the fee with spending rewards: You’ll spend enough to offset the annual fee, earning more rewards than you could with a no-fee card. Bad or limited credit history: You don’t have the best credit history, so you may need to settle for a card with a fee that’s designed for poor or limited credit. Here are some of the most common reasons why you might want a card with an annual fee: Is It Worth Paying an Annual Fee for a Credit Card? It’s worth noting that if you cancel or downgrade a card within a certain time period after paying the annual fee, you might get a refund, though it may be prorated.Īnnual fee policies vary, so if you’re uncertain how yours works, simply contact your issuer and they should be able to tell you. Less commonly, a card’s annual fee might be charged in monthly installments. In the following years, it’ll be charged around the same time. Sometimes it will be charged as soon as your account is opened. When Are Annual Fees Charged?ĭuring your first year as a cardholder, most credit card annual fees are charged on the last day of the month that you’re approved. How long is scanguard free from fees for free#
In other cases, they may be the cost of having poor credit.Īnnual fees are just one of many fees that you may be charged, but in many cases you can use credit cards completely for free if you follow certain guidelines. These fees tend to range significantly in price, but higher annual fees on reward and travel cards often accompany more valuable benefits. What Is a Credit Card Annual Fee?Ī credit card annual fee is a price that you’re required to pay every year to remain a cardholder and enjoy the card’s rewards and benefits. Why pay when there are so many other card offers without fees?Īlthough there are many great no annual fee credit cards, a yearly fee shouldn’t scare you away from any particular card. There are many situations in which a card with an annual fee will end up being more valuable to you than a no-fee card. You might think it’s crazy to pay an annual fee for a credit card.
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