 TITLE: Should I Cancel a Credit Card With an Annual Fee? CONTENT: How a Credit Card Annual Fee Works\n----------------------------------\nIf your credit card has an annual fee, you'll generally have to pay the fee when you first open your account and each year on the anniversary of your account opening.\nIt's important to remember that the annual fee immediately gets added to your account's balance. Even if you don't use your card for purchases, make sure you pay your bill on time to avoid getting charged a late payment fee as well.\nSometimes, card issuers will waive the annual fee for the first year, which can make it easier to sign up and try out the card. However, you'll still need to decide if you want to keep or cancel the card when your account anniversary comes around.\nGenerally, a credit card that has an annual fee will offer better rewards on purchases and cardholder perks than a card that doesn't have an annual fee. The cards with the highest fees are premium credit cards, which may come with luxurious perks, such as access to airport lounges and status in hotel or airline loyalty programs.\nSome secured credit cards also have fees, as applicants generally have no or poor credit and fewer options when choosing a card. However, that's not always true, and some of the best secured cards don't have an annual fee. END