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What Is An Annual Fee
What is Annual Fee?
When a person decides to register a credit card in their name, they have to go through the whole screening process of evaluating one's credit limit or credit bank. This is done surreptitiously via a credit bureau which is an organization that has access to a lot information about all the financial history including all sorts of ledgers that has a detailed account of the previous credit cards that the person possessed and also whether the credit card payments were made on time or not.
After this whole process is completed and the application is approved, the credit card agreement is signed and the customer has to pay the initial annual fees. Usually, most credit cards are valid for more than just a year, but still most of them have annual fees that are charged or billed to one's account every year on the day that the credit card agreement was signed. The usual value of the annual fees in Canadian credit card banks and companies is around eighteen to twenty dollars, though this amount is much higher in case of a gold or platinum card.
They also vary from bank to bank. In fact some banks even waive the entire amount during the first or initial few years in order to attract customers. They then hope that the customer forgets about it later and charge it hoping it would pass unnoticed. This is not illegal and hence charging annual fees has become a very common occurrence in most Canadian banks.
Of course there are also some companies and banks that give credit cards without any annual fees whatsoever. The most famous ones in Canada that have a no-annual-fee offer are AT&T Universal Cards and other major banks. Though this is not very public, there are also a number of secret offers and programs that provide credit cards sans annual fees. This is kept private because the companies use them to woo important customers whom they really want like celebrities and other important officials who might end up giving the bank or company a large amount of business and prestige. They wouldn't want everyone to take up that offer since they would lose a major source of revenue.
If a person really wants to avoid paying the annual fees then the ideal method to go about it is to talk to his or her credit card company and just ask for it. If they refuse then one could try bluffing their way to get what they want by threatening to take their business elsewhere if they are not given an annual fee waiver. Though, one should keep in mind to have a back-up plan if it doesn't work or if the telemarketer calls the bluff. Although sometimes it might work and then one can enjoy a fruitful relationship with the credit card. It is also possible that instead of waiving the fees, the company might offer some other forms of compensation like a gift voucher. In that case it would be prudent to accept the offer, for after all, something is better than nothing. What is an Annual Fee?
When a person decides to register a credit card in their name, they have to go through the whole screening process of evaluating one's credit limit or credit bank. This is done surreptitiously via a credit bureau which is an organization that has access to a lot information about all the financial history including all sorts of ledgers that has a detailed account of the previous credit cards that the person possessed and also whether the credit card payments were made on time or not.
After this whole process is completed and the application is approved, the credit card agreement is signed and the customer has to pay the initial annual fees. Usually, most credit cards are valid for more than just a year, but still most of them have annual fees that are charged or billed to one's account every year on the day that the credit card agreement was signed. The usual value of the annual fees in Canadian credit card banks and companies is around eighteen to twenty dollars, though this amount is much higher in case of a gold or platinum card.
They also vary from bank to bank. In fact some banks even waive the entire amount during the first or initial few years in order to attract customers. They then hope that the customer forgets about it later and charge it hoping it would pass unnoticed. This is not illegal and hence charging annual fees has become a very common occurrence in most Canadian banks.
Of course there are also some companies and banks that give credit cards without any annual fees whatsoever. The most famous ones in Canada that have a no-annual-fee offer are AT&T Universal Cards and other major banks. Though this is not very public, there are also a number of secret offers and programs that provide credit cards sans annual fees. This is kept private because the companies use them to woo important customers whom they really want like celebrities and other important officials who might end up giving the bank or company a large amount of business and prestige. They wouldn't want everyone to take up that offer since they would lose a major source of revenue.
If a person really wants to avoid paying the annual fees then the ideal method to go about it is to talk to his or her credit card company and just ask for it. If they refuse then one could try bluffing their way to get what they want by threatening to take their business elsewhere if they are not given an annual fee waiver. Though, one should keep in mind to have a back-up plan if it doesn't work or if the telemarketer calls the bluff. Although sometimes it might work and then one can enjoy a fruitful relationship with the credit card. It is also possible that instead of waiving the fees, the company might offer some other forms of compensation like a gift voucher. In that case it would be prudent to accept the offer, for after all, something is better than nothing. What is an Annual Fee?
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