what is a annual fee on a credit card and do you pay it monthly or yearly
2006-10-06 12:18:00 · 9 answers · asked by lilmama14n_28384 2 in Business & Finance ➔ Credit
Yearly = annually :-D
2006-10-06 12:19:53 · answer #1 · answered by jakajo1 2 · 0⤊ 0⤋
it is a yearly charge that you pay for the privledge of using their card. You generally get charged it once a year and then if you don't pay off your card immediately with the fee, then you pay on it, with interest, for the rest of the year. Do yourself a favor and get a card without an annual fee. There are enough companies competing for your business that you shouldn't be limited to cards with an annual fee.
2006-10-06 12:36:29 · answer #2 · answered by Anonymous · 1⤊ 0⤋
It is fluff; e.g. a fee associated to a card that most people don't need.
These are often cards which are applied for through unsolicited direct mail. You might receive something in the mail that advertises one of the following "0% apr" , "complimentary 15,000 miles on your airline , etc.
The kicker is, that 100's if not 1000's of people buy into this gimmick and each pay an annual fee, which is applied to your statement via a set date (usually a few months in the future that you won't notice).
It's pure profit for these companies, which serve as middlemen for the credit card banks. Each of whom are motivated by receiving a "spiff" based on the membership for getting you locked into a vehicle that will help perpetuate future debt and interest fees for the bank.
2006-10-06 12:30:21 · answer #3 · answered by Altruist 3 · 0⤊ 0⤋
annual fee is a yearly fee which you pay every year on the same month that you first acquired your credit card.
2006-10-06 13:25:13 · answer #4 · answered by glasgow girl 6 · 0⤊ 0⤋
annual means it is payed once a year. go with a credit card that has no annual fee, there are many. Annual fees are just another way that credit card companies steal your money.
2006-10-06 12:27:08 · answer #5 · answered by ? 6 · 1⤊ 0⤋
LOL annual fee hhmmmmmmmmmmmmm ummm u pay it monthly, (just kidding yearly) DUH!!
You pay them to use their card on top of paying them interest.. Rip off!!
2006-10-06 12:26:21 · answer #6 · answered by sabbycat76 4 · 0⤊ 0⤋
The fee is what the credit card company charges you for the privilege of owning the credit card. Your paperwork will tell you when it is charged to your account. This is especially common on "Rewards" cards which give you points for air travel etc. If wish, shop around. Most banks have two or three plans, one of which is usually free. Credit Unions are now available to anyone and they also offer cards. Even Costco offers a credit card. Don't give them your money for free.
2006-10-06 12:24:53 · answer #7 · answered by Anonymous · 1⤊ 0⤋
The annual fee is a maintance fee they charge,most of the time it is charged monthly.But I quess they could charge the total fee all at once if they wanted to.
2006-10-09 10:20:48 · answer #8 · answered by George K 6 · 0⤊ 0⤋
it is a fee you pay once a year,usually at the anniversary date of you sign-up. you can get cards with out fees,though,so why pay if you don't have to!!!
2006-10-06 12:23:14 · answer #9 · answered by Tired Old Man 7 · 1⤊ 0⤋