Annual Fee

What is an Annual Credit Fee?

An Annual Fee is a cost charged each year to customers by some lenders for their services.

Annual fees are mostly seen in commercial finance and trading loans, but also crop up in the consumer world, where annual fees might well be charged for bank overdrafts, and sometimes, for Charge Cards and Credit Cards. Usually cards that require an annual fee will offer their customers some kind of additional benefit to entice people to join.

Annual Percentage Rates include Annual Fees within the calculation of the overall cost of credit.

Annual fees are often not given much prominence at the point of sale, with the exception being when cards are being compared by a third party.


Q: How can I find out if something charges an Annual Fee?

A: Annual fees must be disclosed by law before credit can be taken out, but that doesn't mean they're necessarily easy to find in the marketing literature that's used to promote the offer. If you're in any doubt about whether a loan or form of credit charges an annual fee, check the Schumer Box for more information before applying.

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