A credit card is a good option for people who like spending more on consumer goods and services. For people who pay back their dues on time,  credit cards could be more useful than cash and make various banking processes such as getting approvals for loans and mortgages easier.

When you apply for a credit card, it is highly possible that the bank will look into your financials, credit history, credit score,  and your relationship with the bank to recommend which credit card would be suitable for you. While choosing a credit card, you will find some cards that will charge fees while some may not.

• What are the different types of credit cards that charge annual fees?
  It is not necessary for a bank to charge annual fees to a customer for every credit card they provide. The types of cards that would take annual fees include reward cards, premium cards, and secure cards. An important thing to be noted here is that the cost of maintaining and using these credit cards can be much more than paying the annual fees.

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• When are the annual fees charged?
  The annual fee may have to be paid during one particular month of the year. The payment is as a one-time charge and full payment is required to be made. This designated month could be at the start of the year or on the date when the card was applied for. The fee could also be paid on a monthly basis in some cases if the fee amount is too much for you to pay all at once.

• Are there credit cards which don’t charge annual fees?
  Yes, there are credit cards which don’t charge any annual fees. Such cards are useful for customers who aren’t too keen on availing perks and rewards that credit cards with annual fees usually offer. So there is no requirement of paying annual fees. But these cards do offer small rewards such as grocery and gas rewards. One such popular credit card is the Bank of America Cash Rewards credit card that offers an annual percentage rate (APR) of 15%. Such cards also help in improving credit scores tremendously because of fewer costs involved.

• Can banks change the annual fees of credit cards?
  Yes,  credit card issuers and banks can change the annual fees of their credit cards. However, the bank or card issuer has to let the customer know about this. The bank has a period of 45 days to do so as per federal law before the changes in the annual fees become effective. You can choose to opt out of annual fees credit card the service in case the fees are changed. However, this could impact your credit score in the long run.

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