Annual fee, or membership fee, is an amount credit card companies charge for the right to use or carry their card. Not all creditors charge this fee, but the ones that do range from an average low of $25 to as much as $100 or more.

Today there is so much competition among banks that annual fees are starting to become a charge of the past. There are, however, cards that are worth paying an annual fee to use. For example, a card with a fixed, low rate may be worth the annual fee depending on the credit limit. The greater the limit, the lower the comparable interest charge to use that money.

Some banks offer other rewards programs like free air miles, free video rentals, etc. for using the card. In those cases, banks may be able to justify charging an annual fee.

When I call to ask for an annual fee to be waived, my experience has been that 95% of the time they do it!

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