A no-annual-fee credit card is — you guessed it — a credit card that doesn't include an annual fee. That means you won't be charged a yearly fee to use the card, so you can enjoy any perks and earnings rates at a minimal cost.
But why do some cards have annual fees, and is it worth getting a card with an annual fee over a card without one? Keep reading to find out.
What is a credit card annual fee?
A credit card annual fee is a recurring fee that credit card companies charge users to maintain their accounts. It helps issuers cover the cost of card benefits, among other things and can range from $0 to more than $500 for the most exclusive cards.
Most lenders charge the fee annually, though some charge a monthly fee instead.
Related: The complete guide to credit card annual fees
Why do some cards have high annual fees?
Some premium rewards cards have annual fees in the hundreds of dollars, but the cards come with lucrative perks that can make paying the fee worthwhile ... if you can take advantage of them. For example, The Platinum Card® from American Express (see ) charges an annual fee of $895.
