Annual Fee
A yearly charge for holding a credit card, regardless of use. Premium rewards cards (with travel benefits, cash back, etc.) often charge annual fees ranging from $95 to $550+. Secured credit cards sometimes charge annual fees. Calculate whether the card's benefits exceed the fee before applying.
Related guides
- Full credit & FICO® glossary
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- Secured Credit Card
A credit card that requires a cash deposit as collateral. The deposit typically equals your credit limit. Secured cards are designed for people with no credit or poor credit and report to the credit bureaus just like regular cards, making them effective credit-building tools.
Frequently Asked Questions About Annual Fee
What does Annual Fee mean?
A yearly charge for holding a credit card, regardless of use. Premium rewards cards (with travel benefits, cash back, etc.) often charge annual fees ranging from $95 to $550+. Secured credit cards sometimes charge annual fees. Calculate whether the card's benefits exceed the fee before applying.
Is Annual Fee important for my FICO® score?
Understanding Annual Fee helps you manage your credit profile more effectively, which in turn supports a stronger FICO® score.