Find out in this article what the credit card annual fee is, how to pay it and its value so that you can make the most of the credit line experience and choose the best one for you.
While the world is seeking to eliminate the use of cash, the Central Bank estimates that around 95% of the country's population uses cash to make purchases on a daily basis, although this is known to be mixed with the use of bank cards.
For users who still pay in cash, it is in their interest to use credit cards. Therefore, it is essential that they know how it works, what the credit card annual fee is and how they can take advantage of this payment method.
What is the credit card annual fee?
The credit card annual fee is a commission that represents the amount charged for the right to use and access the credit line associated with the card you receive. It is important that you are clear about the charge that will be applied to you, since the credit card annual fee is part of the costs associated with obtaining the card and may be charged in a single annual installment or every month.
How much is the annual fee for a credit card?
To find out how much this commission will be charged, you should consult your account statement or the contract you signed, as it depends on factors such as the type of card, the use you make of the credit line or whether there are differences in payments throughout the year. In any case, it is the bank's responsibility to inform you of the charge for this commission before you sign up for the service.
When the credit card annual fee is charged once a year, it is usually on the anniversary of the contract. If the annual fee is paid in installments, simply multiply the number of months in which the annual fee is charged by the amount.
There are products where the annual fee for a credit card can be avoided. This is possible when certain rules established in the contract are met. These are usually for a certain amount of use of the credit line or for accumulating a certain amount of money during a month.
Another factor that influences this is the card’s scope. In other words, if you have a high-end card, the annual fee may be higher. In this case, knowing how much the annual fee is for a credit card will depend directly on the type of customer you are and your lifestyle.
Annual fee payment methods
Some banks, in their eagerness to attract more customers, have disguised the “good” annual fee with payment schemes for it. (However, it is worth remembering that not all credit cards will charge an annual fee. There are some that waive this fee; just look for them. However, they will not always meet your needs).
Annuity payment: means that you can cover your annuity payment in several exposures, usually 3.
Conditional annuity: this type of annuity can be avoided if you follow the “rules” imposed by the bank, generally, these are mandatory purchases or use of the card for a certain amount of money per month.