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Credit Card Annual Fee: In today’s time, credit card has become very convenient from online shopping to paying bills and purchasing any item. But while taking a credit card, it is not enough to just look at the features like cashback, reward points as well as discounts and airport lounge. It is equally important to understand the card fees and other charges. Because, often the credit card issuing banks charge you an annual fee.

Many credit cards are available free or with low fees for the first year, but renewal fees may also apply from the second year onwards. Therefore, whenever you are going to get a credit card, first find out from the bank what is the annual fee of the card.

If seen, there are many banks or institutions which provide free credit card facility to the customers. That is, in some places no annual fee is charged. However, in some banks, no fees are charged for the first year and then annual fees are collected. Credit card annual charges vary from company to company and card type.

Generally this charge can range from Rs 500 to Rs 3 thousand. For a normal card it can be between Rs 300 to Rs 500. However, its charges and rules are different everywhere. If you take a premium card, you may have to pay a little more in the annual charge.

Some credit card issuing institutions and companies also impose hidden charges on the card, which the customer has to compensate. You may not be told about these charges initially, but later you have to pay these charges. You may also have to pay joining fees and renewal fees in the name of hidden charges. Therefore, you should find out about it in the beginning itself.