What are the precautions needed to be taken when... - Other Questions

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Questions » User Questions » Other » What are the precautions needed to be taken when bargaining for no annual fee credit cards?

What are the precautions needed to be taken when bargaining for no annual fee credit cards?

Answered on

Money is charged to customers by credit card companies, irrespective of the usage of the card on a yearly basis. Most credit card companies charge fixed annual fees to its card holders. This fee remains variable and is different for each company. The annual fee is charged irrespective of other expenses, these includes, interest rate, transaction cost etc.

A nationwide survey has shown that a major part of the population, regard the absence of an annual credit card fee an important criteria, in selecting a card company.

No annual fee credit cards and the precautions to be taken

With an increase in competition, many credit card companies are attracting customers with credit card offers of no annual fees. There are however, certain points that customers should be aware of, before choosing.

  1. While the credit companies promote no annual fee charges, they charge higher APR rates to make profit. When bargaining for no annual fee charges, one must also enquire about the other charges.
  2. If you have a good credit and is an old customer of a bank then it becomes easy to bargain in getting a no annual fee charge. One can also avail interesting interest rates.
  3. It is better to opt for credit cards that charge annual fees, with lower interest rates. The best way of comparing the annual fee charges of the different cards is to visit the credit card website. A comparative account of the annual fee charges along with the other features is also available. Reviews of a particular credit card company can also be visited.
  4. Read the fine print on the card statement. In case of any confusion regarding the annual charges it is best to contact the bank directly and get clarified.

A no annual fees credit card, can save a lot of. Sometimes, customers need to keep credit cards with them, as directed by their official guidelines. Annual fees charged on an unused credit card, becomes a burden for the customer. From the bankers point of view, a credit card with no annual fee charges, attract more customers, increasing the bank’s productivity and profitability.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit

Other Questions in
Other