Avoid Paying an Annual Fee

If you have credit cards then you probably want to reduce or limit the amount of fees that you pay anyway that you can. A high rate of interest can cost you a significant amount of money in finance charges over a period of time. Whenever you are late even one day your credit card account is accessed a late payment fee. Whenever you go over your line of credit there is also a fee for going over your credit limit. Always actively look for ways to cut your fees whenever possible. These are very tough economic times and your money is important.

There is no sense in letting your money go out the door unnecessarily. To cut your fees and expenses always pay your credit card accounts on time and don't go over your limit. Avoid cash advances because they are extremely expensive when you factor in the interest rate and the fees. Another way to control your fees is to stop paying annual fees.

Some credit card companies still charge annual fees and unfortunately the only way to get that fee waived is to close your credit card account. If you cancel your credit card account as long as you let the lender know within 40 days of receiving the bill. A lot of companies will waive this requirement and they will just waive the annual for you.

If you have a credit card that charges an annual fee you will be charged that fee every year even if you are not using the credit card. If you are not using the card then it will be worth it to close out the account.

Now if you close your account it can affect your credit score because it reduces the amount of available credit that you have to access. If you have other credit cards and you have been on file with the credit bureau for a long time then closing one account should not have a major impact on your credit score.

There is no sense paying an annual fee when you don't have to. In the future always check the terms and agreements to see which credit card companies have annual fees and they should be avoided.

An annual fee can be as high as $200 or more depending on the credit card company. You really don't want to incur any unwanted fees such as these if you can avoid it.