ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The annual fee will automatically show up on your credit card statement once per year as a lump sum charge. You’re typically charged during the same month that you sign up for the card and then every 12 months after that. You’ll pay the annual fee the same way you’d pay for regular purchases shown on your statement.

Detailed explanation-2: -Annual fees are the amount you pay for the benefits that come with your credit card. Not all credit cards have these fees. Generally, the higher the annual fee, the more benefits the credit card provides.

Detailed explanation-3: -Why Do Some Credit Cards Have Annual Fees? Some credit cards have annual fees because they offer extra benefits. These may include things like cash back, miles rewards or free checked luggage on flights. Cards for people who are building or rebuilding their credit may also charge annual fees.

Detailed explanation-4: -Joining fee and annual fee: To own a credit card, you need to pay an initial cost. Banks usually charge a joining fee followed by an annual fee, though some card issuing companies may offer cards free of cost. The joining fee usually starts from Rs200 and can go up to Rs25, 000.