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
Explore further
Take control of your credit health
Get the complete credit toolkit with all features included.
Start building creditInstant setup. No credit check to join. 14-day money-back guarantee.