If you are looking to save money on credit card transactions, it may be a good idea to look for a card that has no annual fee. While they used to be fairly common, they are no longer automatically included as part of your cardholder agreement. There are several tips that you may be able to take advantage of to find out if a card has no annual fee before you apply for it.
1- Do You Have Good Credit?
Most cards that are made available to those with good credit do not have an annual fee. Typically, they are reserved for those who have credit scores of between 640 and 680. Credit card companies charge these fees for borrowers with lower scores because they are limited by law as to how high they can set their interest rates.
2- Is It Advertised as Having No Annual Fee?
In many cases, credit cards that come with no annual fee will have that listed on promotional materials. If you get an offer in the mail, that is likely to be one of the benefits listed as to why you should apply for the card.
3- Look Specifically For Cards With No Annual Fee Online
When you shop for a credit card, you may have the ability to sort cards into specific categories. Therefore, if you are looking for a card that has no annual fee, you can simply narrow your search to those that meet your criteria. However, it is important to note that some cards may waive or reduce their fee in the first year, so that is something to look for as well.
4- Ask the Credit Card Company If There Is an Annual Fee
If you aren’t sure if a card comes with an annual fee, it doesn’t hurt to ask the company issuing the card to clarify that for you. In some cases, the fee will be small enough that you may be able to afford it anyway if the other benefits outweigh that one drawback. It may also be possible to ask about other cards that don’t have fees while talking to a customer service representative.
5- Look at the Sample Cardholder Agreement
Before you apply for a credit card, you should be given a copy of the cardholder agreement, according to CreditSoup. It will typically state if there is an annual fee associated with the card that you would like to apply for. It will also tell you if there are any other fees that are charged on a monthly or yearly basis.
6- Find Reviews for Any Cards That You Want to Apply For
The internet is full of reviews and testimonials from others who have used a card that you may be interested in. Those reviews or testimonials are likely to include information as to whether or not there is an annual fee for that card. If that information isn’t made available in a blog post or comment, you can always ask for it.
7- Ask the Credit Card Company to Drop the Annual Fee
If there is an annual fee charged on a credit card that you would like to apply for, you can always ask the credit card company to drop it. If you have good credit or a prior history with the card issuer, it may be possible for that to happen. This is because a potential creditor would rather have your business and collect interest over a period of many years even if it means missing out on $50 a year in annual fees.
Credit cards can make it easier to finance your lifestyle. However, it is never a good idea to pay too much in fees that only enrich the credit card companies. If you know where to look, it is easy to figure out if a card has an annual fee, how much it is and how you may be able to get it removed.
