Feb

1

Why do people get credit cards with annual fees?

Filed Under Credit 

rettilps asked:


Since there are so many cards with no annual fee, I don’t understand this. I know that some are for those with poor credit, but I’ve seen cards with average rewards and high annual fees that are rated for those with excellent credit only. What’s the benefit?
Jalen, I think you’re selling something. I’ve seen you give that answer to someone else. I have good credit and I know my score. I just want my question answered.

PRESTON

Comments

4 Responses to “Why do people get credit cards with annual fees?”

  1. GUSTAVO on February 3rd, 2010 10:42 pm

    BILLIE

    The best rewards cards require the best credit that can only be matched by adding an annual fee.

  2. JAIME on February 4th, 2010 6:23 am

    HECTOR

    We pay 200 bucks a year for our card. This is because we collect aero points which we use regularly. We normally cash in about $5000 bucks worth of free air tickets yearly. So paying the 200 is really worth it.

  3. CHASE on February 5th, 2010 11:47 pm

    ELI

    I really don’t know why they get one with high interest rates and annual fees either. I am so happy with my credit card from my credit union. It charges 5.9% interest with no annual fees and I have a credit limit large enough to buy a new auto. I think people should forget about banks and use their credit union.

  4. ELOY on February 6th, 2010 6:47 am

    TRISTAN

    In my experience some credit card companies charge annual fees because they offer better benefits like wider coverage on merchandise on sale, offer more generous rewards (although recently companies have scaled down or have become more stingy on this).

    But of course, you can always find similar offers from bigger card companies like HSBC (Visa/MC).

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