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Do All Credit Cards Have Annual Fees?
4 min read
Written By
Yekaterina Galanova
Rounding it up
Some credit cards have annual fees, others don’t.
Each credit card comes with different interest rates, benefits/rewards, and fees, so it’s important to educate yourself before choosing a credit card.
Whatever credit card you pick, always remember it’s not providing you with “free money.” Rather, it’s a type of loan that you need to pay off in time to avoid supplementary costs.
As long as you stay on top of your payments, credit cards are a useful tool to build your credit.
Make Essential your no fee account
No. Not all credit cards have annual fees.
Many credit cards are $0 per year, but some charge an annual fee (often for extra rewards, travel perks, or insurance).
A Simple Alternative: KOHO Essential
If you want a card for everyday spending without worrying about annual fees on a credit card.
With KOHO Essential:
It has a low monthly plan fee that can be waived when you set up direct deposit or add +$1,000.
Use a prepaid Mastercard® for groceries, bills, subscriptions, and travel.
Grow your savings with a 2% interest savings rate on your entire balance.
Earn 1% cash back on groceries, eating & drinking, and transportation.
You can subscribe to Credit Building for $10/month, it's an affordable way to build your credit history.
Enjoy unlimited transactions and free e-transfers (never worry about fees when sending money to someone again).
Why Some Credit Cards Charge Annual Fees
Credit cards with annual fees usually offer extra value, like:
Higher rewards (cash back or points)
Travel perks (airport lounge access, free checked bags)
Travel insurance or purchase protection
Special welcome bonuses
The idea is: you pay a fee, and in return you get more perks.
Why Some Credit Cards Have No Annual Fee
No fee cards are made to be simple and easy to keep long-term. They often have:
Lower rewards than premium cards
Fewer perks
Basic features that still work well for everyday spending
What to Check Besides the Annual Fee
Even if the annual fee is $0, it is smart to check:
Interest rate (especially if you might carry a balance)
Foreign transaction fees (common on many cards)
Cash advance fees (usually expensive)
Late payment fees
Any “promo” terms, like a fee waived only for the first year
How to Decide What’s Best for You
A simple rule:
If you pay your card in full and want perks, a fee card can be worth it.
If you want to keep things simple, a no-fee card (or a prepaid option) can be a better fit.
About the author
Yekaterina Galanova enjoys writing about personal finance, as well as aesthetic topics, though she is open to discovering new niches. She enjoys reading, traveling and beautiful landscapes.
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