January 31,2007
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Is an Annual Fee Always a Bad Thing?
Many cards that require good or even excellent credit may charge a significant annual fee. Your gut reaction may be to dismiss these accounts – isn't one of the perks of good credit that you shouldn't have to pay any fees? Keep in mind, however, that many of these cards offer rewards and benefits that would be unattainable to those without good credit, and may be worth the investment.
Oftentimes, an annual fee can "buy" you a card with a low A.P.R. and generous rewards programs. These can be the cards that give you the highest percentage cash back on purchases, and the choicest treats and getaways at redemption. Then again, it could just be a card issued by unsavory types who figure they can just make a quick buck (or fifty!). Of course, you won't be able to tell the difference unless you research your card before signing up. Read the terms and conditions provided by the card issuer, and do a quick internet search of card reviews to get the real scoop.