Definition: A credit card annual fee is a yearly fee, usually ranging from $15 to $300, that's charged by the credit card company for the convenience of the credit card. Not all credit cards have an annual fee. Reward credit cards, premium credit cards, secured credit cards typically have an annual fee. The annual fee increases the cost of having a credit card. If you pay an annual fee, make sure the benefit you're getting from your credit card exceeds that cost.
You may be able to avoid an annual fee by charging a certain amount on your credit card during the year. Contact your credit card issuer to find out how you can have your annual fee waived.
If your credit card issuer decides to impose a new annual fee or raise the current one, they're required by federal law to notify you 45 days before the new annual fee becomes effective. You have the option to reject the new annual fee, however, you'll have to close your credit card if you decide to opt-out. Think hard before opting-out because closing a credit card could hurt your credit score.
