Can an annual fee be a good deal?

January 11, 2010

Annual fees on credit cards are often seen as a downside to any credit card account, but there can be a good reason for an annual, or monthly, fee.

Credit cards cost money to run.  Keeping track of accounts, vetting borrowers and advancing money to consumers all cost money.  Credit card providers find various ways of getting this money back, and annual fees are for many borrowers actually one of the cheapest ways of paying for a credit card.  They are also one of the more honest ways of appreciating the cost. read more…