Annual fee
Cards & borrowingA yearly charge for holding a credit card or account.
Overview
Some cards charge annual fees in exchange for rewards or benefits.
You should compare the fee with the value you receive.
Why it matters
- Fees increase the total cost of credit.
- Benefits may not be worth the fee for everyone.
- Fee cards often target specific needs.
FAQs
Does an annual fee affect my credit score?
No. The fee does not affect your score, but missed payments can.
Can I cancel a card to avoid the fee?
Yes, but consider the impact on credit history and utilisation.
Related terms
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