Annual Fee Credit Cards Making a Comeback
October 7, 2009 by Miranda Marquit
Filed under Finance
It used to be that almost no credit card came with an annual fee. Issuers wanted to be competitive, and that only worked if they didn’t charge annual fees. However, with the Credit CARD Act’s passage earlier this year, things are changing a bit. Credit card issuers are looking to replace some of the lost revenue that is likely to result from being forced ti adopt more consumer-friendly practices. As a result, credit cards with an annual fee are making a comeback.
Check for annual fees on your credit cards
LowCards.com is reporting that new credit card offers coming with annual fees are on the rise. This means that before you apply for a credit card, you should check to see if it comes with an annual fee. Another thing to watch for includes changes to your cardholder agreement. Yes, credit card issuers have to give you advance notice before changing terms. But they can still make changes. Make sure you read correspondence from your credit card issuer to see if you are going to be charged an annual fee.
Rebates and reward programs are diminishing as well, and interest rates in general are higher on some credit cards.
Image source: Channel R via Wikimedia Commons
If you’re old enough, you’ll remember that at one time all credit cards charged an annual fee, but then things got very competitive and issuers started dropping their fees to attract customers. My suggestion is to cancel any credit card that imposes an annual fee; vote with your pocketbook.