Glossary
Annual fee
An annual fee is a yearly charge some credit cards bill for having the card, from under $100 to over $600 on premium travel cards; many cards have none.
A fee can be worth paying when the card's rewards, credits and perks are worth more to you than it costs. Many cards waive it the first year. The fee must be disclosed in the card's rates and fees table.
Where you’ll see it on RateHerald
Related terms
- Sign-up bonusA reward, in points, miles or cash back, that a credit card pays new cardholders who spend a set amount within the first few months.
- Cash backA credit card reward paid as a percentage of what you spend, flat (such as 2% on everything) or tiered by category, redeemed as a statement credit, deposit or check.
- Foreign transaction feeA charge, often around 3% of the purchase, that some credit and debit cards add when you buy in another currency or from a merchant abroad.
Sources: CFPB: Regulation Z, 12 CFR 1026.6