Why does my credit card come with an annual fee?
With all of the credit cards out there, is it worth it to pay an annual fee?
Some cards come with one in addition to interest and other possible fees. You might choose a card with an annual fee to unlock extra benefits like travel assistance or rewards points. Or, a bank might offer you a card with an annual fee if you have a limited credit history or lower credit score – giving you an opportunity to build your credit so you can achieve your long-term goals.
Knowing the different credit card options that are available can help you make a strong financial decision for your future.
Is an annual fee credit card right for you?
That depends on your personal needs and where you are in your financial journey. Earning credit is all about consistency, and more than 70% of our customers who made their payments on time increased their credit score1 . Your credit score is often taken into account when applying for loans and other credit products. And an annual fee can be the price of admission for the opportunity to start building credit.
With some cards, the cost of the fee could pay for itself over time once you factor in the rewards and benefits you might enjoy. For example, you might be able to redeem for gift cards at some of your favourite retailers, or get perks when you take a vacation. Review your budget and previous months’ spending to compare the fee against what you might earn through rewards and other benefits.
If you’re a Capital One customer, you have access to the same features and benefits whether you have a fee or no-fee credit card, including:
• Price Protection Service
• Baggage Delay insurance
• Fraud protection with Zero Liability
Conditions and limitations apply. Check out our credit cards to learn more.
Build your credit, no matter which card you choose
When it comes to building your credit, we view all credit cards the same way. We celebrate good credit habits, and offer products and tools designed to help you take control of your credit.
Plus, we report to not one, but two credit bureaus. Some credit providers report to just one, or none at all. But we think it’s important to help you build your credit history at different bureaus, because some lenders may look at more than one before determining whether or not to extend you credit. So, when you’re applying for a loan or ready to lease a car, you’ll be able to paint a clearer picture of your credit history.
Find out which Capital One credit card you’ll be approved for before you apply.2
1 Based on January 2020 to December 2022 data retrieved from Equifax Canada. Multiple factors can impact your credit score.
2 You can be 100% sure you’ll be approved when you apply as long as:
1. There’s been no change in your credit file information, personal information or financial status from the time you receive your Quick Check results to the time you apply for one of our credit cards;
2. You’re at least the age of majority in the province or territory you live in;
3. Your application isn’t flagged for fraud prevention;
4. You don’t have an existing Capital One account; and
5. You haven’t applied for a Capital One account in the last 30 days or had an account with us that was not in good standing in the last year. In good standing means not past due, over limit, fraudulent, restricted, or part of a consumer credit counselling program or bankruptcy.
In some cases, we may not be able to open an account for you even though your application was approved. This can happen if we’re unable to verify your identity, or you don’t provide the required security funds if you’re approved for a Secured Mastercard®.