Credit cards do not charge annual fees annual fees in exchange for the privilege of using them. Most consumers today are fiercely resisting the idea of paying extra money to allow more banks to make more money. The interest fee is sufficient for an additional cost. Creditors have taken advantage of this trend and there are not many credit cards that charge annual fees than before.
Credit cards may continue to charge annual fees for three main reasons:
To provide a steady low interest rate.
To provide additional rewards and other benefits.
For prestige.
Fixed services with low interest
Often annual charge credit cards have a fixed low rate that can make them worth the money charged. But there are also plenty of other credit cards that have no annual fees and that offer low fixed interest rates.
The annual American Express SimplyCash card annual interest rate is 7.75%, a 12-month interest-free introductory period, and a 5% cashback reward for gas, wireless services, and office supplies. Not everyone will be able to get a Simple Cash business card from American Express for the simple reason that not everyone wants or qualifies for a business card. Those who fall into this category have other options.
The Discover Open Road Card has a regular interest rate of 10.99%, with a six-month zero interest free period. The card offers other incentives such as a 5% cashback bonus for gas purchase and vehicle maintenance. Cashback Reward Points are easy to use and do not expire as long as you keep using your card. There is also a Pulaski Bank Gold Visa Card. It is an annual zero-credit credit card with a regular interest rate of only 9.5% and a six-month introductory interest-free period on all balance transfers. There are no other benefits with this card, but the money saved on interest may be sufficient to reward.
The Blue of American Express has a moderate interest rate of 11.74%, but also provides an introductory interest rate of 0% for 15 months on all balance transfers.
Bonus services
Credit card companies and other banks may justify the annual fee fee by claiming that the rewards earned by users are worth the extra annual cost. The decision about whether the rewards are worth the annual fee is entirely up to you. However, you should be aware that you may waste your money if you only pay annual fees for the rewards offered by the card. There are not many annual fee credit cards that offer bonuses or other benefits that may be similar to annual fee cards.
The Discover Open Road Card, as mentioned earlier, offers cashback reward points. The Chase Platinum Visa Card provides free travel services such as car rental collision exemption and travel accident insurance worldwide.
Miles by Discover Card is another annual credit card with no annual fees. With this card, you will get double the mileage when purchasing and traveling to restaurants up to $ 3,000 annually. These miles will only expire if you stop using your card before replacing it. Redeeming miles with this card is easy and can be booked through any airline, travel agent, or travel website. The card does not restrict your travel.
