Credit Card Fees

[questions]

Hi

I don't know wether banks in different countries charge card owners for
the credit card every year, but in my country,banks do so, it's 10yuan
every year. I think it's not proper. What do you think about it?

[NoWayNovember]

I'm not familiar with credit cards outside the US, but I know some credit cards here in the US do charge an annual fee. That said, I would never keep a credit card that charged me an annual fee just to keep the card; there are tons of creditors who will be more than happy to issue me a card without making me pay for it.

If you don't think it's proper, look around! Is it that way for every credit card where you're from?

[CRFSaver]

In the US, there are usually two reasons why a credit card would have fees. It is either for some benefit (United Airlines miles for example) or because of credit worthyness. Having an annual fee is what allows the sub-prime card issuers to still make profit on the overall card portfolio for those in the lower FICO buckets.

That being said credit card fees were quite common in the US until the late 80's early 90's until the monoline card issuers started to encroach on the banks card portfolios. Realize this comes from the banking structure in the US. At one point the US had 14,000 banks. Most other countries have a banking system that is still controlled by 5-10 banks and a closed system that does not encourage competition. All of this adds to the banks ability to charge additional fees.

[iwpg]

I'm not sure about other countries either, but in the U.S. most credit card issuers will not charge annual fees unless:

1. You have a poor credit history and are applying for a card for people with poor credit.
2. You are applying for a credit card with special rewards such as air miles, where annual fees are prominent.

[Ima saver]

I have never had any credit card company charge me a fee. If they did I would close that credit card account.

[iwpg]

I agree with you, I think that these companies should be at our mercy, not the other way around. I mean aren't we already making them rich enough?

[CJsoccerchic]

I completely agree with iwpg!!! hahaha, never thought of it that way, but yeah - they DO make alot of money off people already - why charge fees...
personally I like credit cards that give me back some thing.. whether it be airmiles, or money... those normally you have to pay a fee, I personally think it's worth the fee for a free trip on an airlines...

[boefixepa]

I will NOT have a CC that charges a fee. I have a card that give me miles..no fee. I look and if there is an annual fee...I don't even bother. If my cards were to charge me, I'd call and have the fee removed and/or close the account. I'm NOT going to make them any richer than I already have in the past. It's my turn to earn a little of my money back!!!

As for other countries...I don't know their rules, but I'd check out back debit cards that can be used as CC. I have a visa debit card that can be used at any place that takes a CC.

Good luck