An annual fee is an expense credit card providers charge in exchange for credit card rewards, such as cash back, travel points, or gift cards.
What is an annual fee?
Annual fees can be a one-time charge to the credit card account every year or they can be divided into monthly payments. To make annual fees worth the cost, it’s important to weigh the rewards. It may be worth considering a no-fee credit card if annual fees don’t justify the credit card’s benefits.