No one wants to pay more than they have to on their credit debt, so finding new ways to cut back on costs is a reasonable idea. One method of cutting back these costs is to waive the annual fee that some lenders or creditors charge. It’s not always viable, but well worth the trouble.
It is average to pay about $55 or less when you do accept a credit card that has an annual fee. The annual fee can easily be forgotten, since it comes to around $10 each month. But when you take a hypothetical example of spending $200 throughout the year, you see that you will be putting 20% of that amount towards the annual fee. In addition, you will have interest to pay on top of that, making it more expensive.
Annual fees are charged for several reasons- and not just always because credit companies are greedy. The first reason is because you might not have a solid credit history. Lenders who don’t trust you won’t give you good terms on a loan- and neither will other lenders. Essentially, a poor credit rating brands you as an open target for extra fees when you go in for a loan.
Credit companies are always looking for ways to entice new customers. One method has been to offer rewards for using the credit card. Such credit cards are commonly laden with annual fees, so as to help pay for the rewards the customer is getting. If you plan on using the credit card to a great extent, it would be a good idea to go through with the application.
So there might be a few reasons where an annual fee is expected- but don’t give in yet! Lenders are so competitive in the current market that you won’t have much trouble going to another lender and finding that they don’t charge an annual fee. In fact, most of the major credit companies won’t do so. Consumers have clearly won the war on annual fees through the process of natural selection.
Sometimes all you need to do to get what you want in life is to ask for it. If you don’t want an annual fee, ask for it to be waived. Lenders are more desperate than you realize in having your business, and odds are they will agree, albeit with a smidgeon of hesitation. If they don’t agree, its’ time to go back to square one.
Final Thoughts
Annual fees don’t have to be paid if you don’t think they are necessary. In a capitalism-based economy, you have the right to choose what to buy and under what terms. Credit cards and annual fees are no different.
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