What Is the Annual Fee for MasterCard?
The annual fee on a MasterCard credit card can vary from bank to bank. Some banks charge a very large annual fee, and some banks will charge a lower annual fee. Before you apply for a MasterCard, verify the amount of all fees. Annual fees are accessed to your account at the same time every year. While there may be several methods to avoid an annual fee, one method --- closing your credit card account --- can lower your credit score.
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Range of Fees
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If you review a number of MasterCard accounts you will find a variety of annual fees that range from zero to $300. Even with a high annual fee your MasterCard account can be subject to a high interest rate. The GE Money Eco MasterCard has an annual fee of $49 and a interest rate of 18.49 percent, while the GE Money Go MasterCard has no annual fee and an interest rate of 19.99 percent. Some MasterCard accounts will offer you a lower rate of interest when you have an annual fee, but there does not seem to be any consistency to this practice.
Fees/Promotions
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The St. George -- Vertigo MasterCard offers an annual fee of $55; the interest rate for purchases is 10.99 percent and the rate for cash advances is 19.99 percent. Some of the MasterCard accounts provide special offers and promotions as a reason for charging an annual fee. You may receive promotional packages such as insurance for overseas travel, purchase protection, concierge services and frequent-flier programs. You may be allowed to redeem points for travel rewards with some of the MasterCards. All terms and conditions can vary.
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Fee Waivers
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Competition is fierce among credit card issuers, and they want your business. You may be able to contact your MasterCard issuer and request that your annual fee be waived. If the issuer wants to keep your business there is a good chance that it will comply with your request. There are many MasterCards with a variety of terms and conditions. If you can get a credit card without an annual fee it would be in your best interest to make the attempt.
No Annual Fee
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Here are some MasterCards that have no annual fee. The Commonwealth Bank MasterCard has no annual fee and you can apply online. Currently the annual interest rate is 17.49 percent for purchases and cash advances. This card does not appear to have any additional features and benefits. The Westpac MasterCard also has no annual fee; its annual percentage rate is 18.24 percent.
Fee vs. Interest Rate
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An annual fee can work to your advantage if you can get a low interest rate. When you average it out over the course of an entire year you could save money. If you keep an average daily balance, the interest you accumulate from the higher interest rate could be more than the annual fee you would pay from a credit card with a lower rate.
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