Annual fee
An annual fee is a yearly charge some credit cards bill just for keeping the account open, separate from interest. Many beginner-friendly cards have no annual fee.
Why it matters
For building credit, a no-annual-fee card costs you nothing to keep open year after year, which matters because closing an old card removes its limit and can spike your utilization.
Example
A no-annual-fee secured card lets you keep the account open long-term at no recurring cost. In a 2015 case, the CFPB described cards with a $300 limit and a $75 upfront fee, a quarter of the line on day one, so compare the pricing table first and look for a $0 annual fee and no monthly fee.
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Educational only — not financial advice. No guarantees.