Why do people get credit cards with annual fees?

March 3, 2010

in Poor credit credit cards

Since there are so many cards with no annual fee, I don’t understand this. I know that some are for those with poor credit, but I’ve seen cards with average rewards and high annual fees that are rated for those with excellent credit only. What’s the benefit?
Jalen, I think you’re selling something. I’ve seen you give that answer to someone else. I have good credit and I know my score. I just want my question answered.

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{ 4 comments… read them below or add one }

Jose V March 3, 2010 at 8:32 am

The best rewards cards require the best credit that can only be matched by adding an annual fee.

whaaaa? March 3, 2010 at 9:20 am

We pay 200 bucks a year for our card. This is because we collect aero points which we use regularly. We normally cash in about $5000 bucks worth of free air tickets yearly. So paying the 200 is really worth it.

Bedford S March 3, 2010 at 9:33 am

I really don’t know why they get one with high interest rates and annual fees either. I am so happy with my credit card from my credit union. It charges 5.9% interest with no annual fees and I have a credit limit large enough to buy a new auto. I think people should forget about banks and use their credit union.

RM March 3, 2010 at 9:46 am

In my experience some credit card companies charge annual fees because they offer better benefits like wider coverage on merchandise on sale, offer more generous rewards (although recently companies have scaled down or have become more stingy on this).

But of course, you can always find similar offers from bigger card companies like HSBC (Visa/MC).

http://www.hsbc.com.hk/1/2/hk/cards/rewards/flexi-rewards

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