Can I cancel my credit card and still be charged an annual fee?

Can I Cancel My Credit Card and Still Be Charged an Annual Fee?

When you cancel a credit card, it’s important to be aware of any fees that may still be due. One potential fee is the annual fee, which is charged on a yearly basis for certain types of credit cards.

Annual Fee Due Upon Cancellation

In most cases, the answer is yes, you can be charged an annual fee even after you cancel your credit card. This is because annual fees are typically due at the beginning of each billing cycle, regardless of whether you use the card or not.

Therefore, if you cancel your credit card before the end of the billing cycle in which the annual fee is due, you will still be responsible for paying the fee.

Exception: Prorated Annual Fee

However, there is one exception to this rule. Some credit card issuers offer a prorated annual fee when you cancel your card. This means that you will only be charged a portion of the annual fee, based on the number of days you had the card during the billing cycle.

For example, if you cancel your card halfway through the billing cycle, you may only be charged half of the annual fee.

Check Your Credit Card Agreement

To determine whether you will be charged an annual fee upon cancellation, it’s important to check your credit card agreement. The agreement will specify the terms and conditions for canceling your card, including any fees that may apply.

Conclusion

In conclusion, whether or not you can be charged an annual fee after canceling your credit card depends on the terms of your credit card agreement. In most cases, you will be responsible for paying the annual fee even if you cancel your card before the end of the billing cycle. However, some issuers may offer a prorated annual fee in certain circumstances. To avoid any unexpected charges, it’s always a good idea to check your credit card agreement carefully before canceling your card.