credit card fee question

[SSH0126]

what happens with the annual fees for these cards that collect them up front if you cancel the card at month 11 and do not have a balance? Do they refund it back?

[Anonymous]

To my knowledge all annual fees are prepaid and charged up front.  So at month 11, you wouldn't be entitled to a refund because that annual fee was for months 1-12.  Now if you just got charged an annual fee and you cancel the card usually within the first 30 day, sometimes up to 90, they will refund the fee.

[SSH0126]

Its a new card. They charge up front but its crazy to label it as annual and keep it if the cardholder cancels before having the card for one yr.

[StartingOver10]

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@SSH0126 wrote:

Its a new card. They charge up front but its crazy to label it as annual and keep it if the cardholder cancels before having the card for one yr.

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Not really.  Think of it as a fee that the creditor charges to use their card.  I don't like annual fee's either so I tend to stay away from those cards. Having said that when you are in the rebuilding stage after Bk it may be the only way to get started. Once you are on your feet then you can cancel the cards with fees as long as you have others so your utilization is not affected - or barely affected.