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1.3. Annual fees

An annual fee is the amount you pay your issuer for using a credit card. This is separate from interest charges and is applied to your account balance once a year, with the cost ranging from $25 for a basic card to over $1000 for premium cards.

Credit cards that never charge an annual fee are known as “no annual fee cards”, and often have fewer features or higher interest rates. Comparing the cost of the annual fee to all the features you plan to use will help you figure out if it is worth it.