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Credit Card Rewards, Fees, and Credit History: What about Them?

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If you are a frequent credit card user, you can earn rewards and benefit from your purchases. It depends on the card that you use on what particular rewards you can get. There are some that comes in a form of rebate, some in a point system, and some, freebies. These rewards are provided by the company as a way of thanking you that you are a valued customer. But there are some things that can affect your eligibility and your whole benefit for such rewards.

What is an annual fee?

An annual fee is a fee charged by credit card companies every year to maintain your credit card account. This fee also covers your exclusive membership on a certain type of cards. Most of the time, this is found with high end credit cards or those that have a high credit limit like platinum cards, gold cards that can give you additional perks and freebies.

How does paying an annual fee affect my credit card rewards?

If you notice, the most beneficial and luxurious type of reward is from high end credit cards. A frequent credit card user and the one who has a higher balance get these kinds of benefits but still pay an annual fee. An annual fee does not really give you the benefit of the rewards it gives because you are paying for something that is supposed to be free. If you think about it, the only way you can get rewards or incentives like this is when you apply for a high maintenance credit card and pay a fee for it.

Can I get credit cards with no annual fees?

There are credit card companies that do not charge annual fees and still have incentives for you. You can shop around for the best credit card and you can do this by surfing the internet.

Can my credit history affect my rewards?

Well, basically, what you need to develop is good paying habits. If you are able to train yourself to pay your debt on time, discipline yourself on your spending, you will be able to avoid finance charges and get yourself rewards. Having a good credit history can give you a lower interest rate and a low APR or annual percentage rate that will give you lower charges and fees. But maintaining it on a good standing will definitely benefit you because you will earn rewards and also make that good standing even better.

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