what is an annual fee on a credit card

An annual fee on a credit card is a cost that a cardholder has to pay each year for the privilege of using the card. This fee can range from around $35 to $550 or more, depending on the card and the benefits it offers. The fee is often associated with cards that provide perks such as cash back, airline miles, or reward points. While some cards waive the annual fee for the first year, others may require monthly or yearly payment. The decision to pay an annual fee depends on whether the cardholder will use the card enough to benefit from the perks and rewards it offers. If the perks are not useful or if the card won't be used frequently, it may be better to opt for a card with no or low annual fees