Credit cards - Annual Fee

[shazzabell]

Do I still get charged an annual fee if I don't use my credit card?

[Buenchico]

The majority of credit card companies have abolished annual fees but if you've got a card with an annual charge then you'll have to pay this whether or not you use the card.

I used to have a card with an annual charge. I never used the card so, for 11 months of each year, the card company sent me 'zero' bills. Because I knew that I didn't owe anything I got into the habit of not opening those letters. Of course, what happened was that I ignored the bill with the �10 annual charge. The following month I received a red bill for �10 + one month's interest + �30 penalty charge. This made the annual fee, for a card I didn't use, rather expensive! (You might think that I'd have learned from this experience but the same thing happened for the next two years as well!).

Chris

[Postdog]

I think the answer to that problem is to use the card. It needn't be for anything major, and probably for something that you'll settle anyway, but at least you use the card.

[shazzabell]

Gosh! Isn't that awful, Chris? I haven't got the card authorised yet. Might just look for one without the annual fee! Thanks for your replies.

[angie26]

A few years ago I had a barclaycard which had an annual fee of �10 and as I hardly used the card I phoned them to cancel it. They asked why I wanted it cancelled and when I told them I could get a card with no annual charge they scrapped the yearly �10 fee so that I would keep the card.

I've still got the card, still hardly use it though.

You may be able to do the same if you want to keep your card, as they are so desperate for people to hang onto them.