Annual Fees - A fee payable on a yearly basis.
All UK finance products generate costs for setting up, administering and running. These annual costs are passed on to the consumer and are usually added onto monthly repayments. Annual fees can vary from lender to lender and they also depend on the type of product offered. Fees are charged for most UK finance products including loans, mortgages, UK insurance and UK credit cards.
Annual Fees Example - UK Credit Cards
In the UK Credit Card issuers charge for managing accounts, lending finance, receiving payments, and producing the card itself. The credit card companies recoup these costs by charging a set fee to the consumers of their products. The amount charged by credit card issuers can vary greatly from company to company so consumers should make comparisons when shopping around for credit cards.
Annual Fees Information
Use the internet and shop around online for a UK credit card, a consumer can find out what annual fees are charged and save themselves money by choosing a low rate credit card.
Ensure that all the terms and conditions are read, understood and all charges, fees and repayments for the credit card are within your monthly budget. This will ensure that you do not run into repayment difficulties later.