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RE: Why do credit card companies charge an annual fee?

Postby jonathanpaul » Thu Jul 01, 2010 01:07:52 PM

hi monty..

what your saying is factual as i have search on the net the capital one aspire card.. spending more using the card entitles the card user to get more points that could be redeemed with rewards..

another benefit of the card is that when you spend a dollar, it instantly give you 2 reward miles points. it means that if i get to spend more than $1 in every purchase i make, it won't be long enough that i can book tickets using the points i have earned. i found out that redeeming a travel reward starts at $15000 which is easy to accumulate with miles points.

this card really is giving a good deal to any card applicant. i think this card will be the perfect choice for individuals who are frequently flying. they just earn points by using the credit card and gets a chance to redeem free tickets.

plus, during anniversaries or on your first purchase with the card, you get bonus points such as $35000 miles points on first purchase and additional 10000 miles points every year coming from the anniversary celebration of the company.

that how easy these points are given to Capital One Aspire credit card holders.
thanks monty.
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RE: Why do credit card companies charge an annual fee?

Postby montyloree » Thu Jul 01, 2010 06:01:12 AM

hi jonathan,

It's completely reasonable for credit card company to charge an annual fee. It's also the choice of the individual whether they want to pay that fee or not.

In some cases you'll actually get more rewards by paying the highest annual fees, then you would if you paid no annual fees.

This is especially the case with the new Capital One Aspire World MasterCard... with this card you get them more rewards points if you're spending over $3000 per month on your credit card. The more you spend with this card the more points you'll collect.

Having said that if you are spending $3000 per month and you had the Capital One Aspire Gold Mastercard, you wouldn't collect as many points.

The point I'm trying to make is if your high spender, and your convenience user which means that you pay your balance off at the end of the month it's probably better to go with the Capital One Aspire Gold Mastercard
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RE: Why do credit card companies charge an annual fee?

Postby jonathanpaul » Thu Jul 01, 2010 05:06:56 AM

hi there..

i think its fair for a credit card company to charge annual fee as it is their source of revenue.. its the choose of the card applicant if they can pay the annual fee..

there are credit cards that don't have any annual fee charges.. you can try to check them so that you won't feel being ripped off by the card issuer..

however, you haven't noticed that the higher the annual fee charges the better the benefits of the credit card. this is just a repayment for the services provided by the card issuer.
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RE: Why do credit card companies charge an annual fee?

Postby creditcardssuck » Wed Jun 30, 2010 08:10:46 AM

credit card companies charge an annual fee because their ripping off their customers. If the credit card company charges $25 annual fee to 1 million people, that's $25 million they get for free income. On top of that they get interest. On top of that they charge the merchant a fee for the transaction. On top of that they charge late charges, NSF fees, and a lot of other hidden fees. I just think it's a ripoff. If you pay cash you don't have to pay annual fees.
Why do people need credit cards?
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RE: Why do credit card companies charge an annual fee?

Postby RichelleM » Mon Jun 07, 2010 05:23:29 PM

An annual fee is a predetermined charge that banks attach you with for the opportunity of making them money by making use of their card. Nowadays, there is a great deal of contest amongst banks that annual fees are becoming a charge of the past. There are, on the other hand, credit cards, cash back card and best travel rewards in Canada that are worth paying an annual fee to make use of.
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RE: Why do credit card companies charge an annual fee?

Postby montyloree » Sun Mar 21, 2010 03:19:26 AM

lol... well... usually there is a profit motive with the credit card companies.
As I'm doing more research it seems that the credit card companies are charging annual fees because they're giving different types of insurances with the product.

They offer product coverage, travel coverage, lost or stolen bags coverage, auto rental coverage and more... the more I look into it the more is covered.
This is especially true with the travellers. People who travel alot need all types of coverage from theft, to lost and stolen items etc....

With some high end cards American Express charges annual fees to give you memberships to some exclusive clubs.. In the air ports you get access to exclusive travelers lounges etc...
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RE: Why do credit card companies charge an annual fee?

Postby bebiesean » Fri Mar 19, 2010 04:47:44 PM

According to discoverfinancial.com, annual fees are used to cover the additional benefits you get from your card like rewards, miles, etc. They offer no annual fee for promotional purposes only so they can get more people to sign up for their card. But if you ask me, I think they change the annual fee so they can get more money out of you. Haven't they been profiting enough from all the other fees they charge?
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Why do credit card companies charge an annual fee?

Postby montyloree » Wed Mar 17, 2010 05:12:24 PM

Why do credit card companies charge an annual fee?

Are you getting less of a service if you have No Annual Fee?
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