Does your credit card charge a fee?

It seems that large numbers of people in the UK could be incurring annual fees on their credit cards after research revealed that one in every eight credit cards now charges customers an annual fee for the convenience of using a credit card. Many customers who have not read the small print on correspondence or statements from their credit cards issuers may not even be aware that they are being charged a fee, and experts advise that card users check their statements or contact their card issuers in order to determine whether a fee is being charged.

Credit card annual fees are normally around twenty pounds, but there are many cards on the market that do not charge fees. Customers that do not want to have to pay an annual fee for the privilege of using a credit card should look around for a different card, which can be done quickly, easily, and conveniently online. However, customers should also ensure that they take other factors into account, such as the benefits, terms and conditions, and interest rates of other cards.

One industry professional from Moneyexpert stated: 'The rising tide of bad debt hitting banks and other credit card firms is forcing providers to tighten their belts and think of new ways to make money. We thought we'd seen the end of annual fees on credit cards, but we think there could be a return sooner rather than later. Credit card companies will be under pressure to improve profits and reduce bad debts, and that could mean finding customers who are prepared to pay for credit.'

Many feel that the introduction of annual fees on a rising number of credit cards is a result of a cap being placed on credit card fees by UK financial regulators and rising levels of bad debt.

Tom Smith
13th June 2007