Sign up & start saving!
Get our weekly newsletter for the latest in money news, credit card offers + more ways to save
Compare Credit Cards
Top Offers
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
When do I pay my credit card annual fee?
Learn what an annual fee is and when it's charged.
Updated
An annual fee is the amount you pay to use your card and its benefits for 12 consecutive months. Not all credit cards have an annual fee, but those that do usually come with better perks and features than their no-annual-fee counterparts. Before choosing such a card, however, it’s always best to weigh in the costs and benefits to make sure it’s worth it.
When do I pay my annual fee on my credit card?
Your credit card annual fee is usually charged when you first activate the account, and then around the same time every 12 months after that. If you have a card that offers an introductory $0 annual fee in the first year, the standard annual fee will be charged for the first time around 12 months from when you activated the card.
After that, the annual fee will be added to your balance each year around the same date. Use this guide to learn more about credit card annual fees, including ways to avoid and reduce the costs.
Tip: Contact your credit card company and ask them when the annual fee will be charged.
Compare credit cards with no annual fee
{"niche":"USCCF"}
How can I avoid paying a credit card’s annual fee?
In most cases, you can’t avoid paying an annual fee. However, depending on the credit card and its issuer you can:
- Get a credit card with no annual fee for life. A selection of credit cards offer no annual fee for life, giving you a way to avoid this cost on an ongoing basis.
- Get a credit card with an annual fee waiver. Some credit cards come with an annual fee waiver for the first year. But starting from the second year, you’ll have to pay the annual fee.
- Use the SCRA. The Servicemembers Civil Relief Act (SCRA) can help you get your annual fee waived with some credit card providers. However, this usually applies to cards you own prior to active duty.
Tips to save money on your credit card’s annual fee
If you have a credit card that charges an annual fee, here are some ways to keep the cost as low as possible:
- Pay the annual fee as soon as it’s charged. Once the annual fee is added to your balance, pay it off to avoid incurring interest.
- Take advantage of complimentary extras. If your card comes with benefits such as rewards or complimentary insurance, the value you get from using them could help balance out the cost of the annual fee. However, it’s a good idea to estimate the value of these perks to make sure they are actually worth it.
Example: Working out of complimentary extras will balance out the cost of a card’s annual fee
Say you have an airline credit card with a $95 annual fee and first checked bag free perk. If you travel often, you could save $30 on your first checked bag per flight. Two round trips annually and you offset the annual fee. But if you don’t fly as much, a card with no annual fee could be a better choice.
Bottom line
While most credit cards come with annual fees, there is a range of options that offer $0 annual fees for the first year or for life. However, other features such as the interest rates, complimentary extras and rewards can also affect a card’s overall value.
So if you’re looking for a new credit card, make sure you think about what features are worth the most to you and then compare a range of options to help you find one that fits your goals.
Back to top
More guides on Finder
-
Best TD Bank credit cards of 2021
The Best TD Bank credit cards are solid, but nothing special.
-
Best credit cards for travel in 2021
Here are our picks for the top travel cards on the market.
-
Best airline credit cards of 2021
Have your sights set on travel this year? We compared nearly 100 cards to find the best deals and perks.
-
Best store credit cards of 2021
Here are our picks for the best store cards of the year.
-
Best no annual fee credit cards of 2021
Our picks for the best no-annual-fee cards.
-
Air Canada to launch new Chase credit card in the US
Air Canada anticipates launching the new credit card and also joining Chase’s lineup of travel partners in 2021.
-
Which payment method do Americans prefer?
Finder analyzes which payment methods Americans prefer to use during the global health pandemic, finding that cash is no longer king.
-
How to separate your finances during divorce
Ways to protect your assets and what you need to know about marital debt.
-
Guide to Chase Mastercard credit cards
There are three Chase Mastercard credit cards, but all three are excellent options for frequent travelers.
Ask an Expert
