No annual fee? That’s right!
While many of the fees associated with credit cards are self-explanatory, the annual fee can be a source of uncertainty, especially since some cards have them and some don’t. Here are some key questions to consider when determining if a Capital One credit card without an annual fee is a good fit for you.
What’s a credit card annual fee?
A credit card’s annual fee is charged in return for access to credit. It helps cover the cost of such things as providing customer service, issuing replacement cards and possibly rewards, such as cash back or travel miles.
Annual fees aren’t the same as other credit card fees, such as over limit fees or dishonoured payment fees. They’re also not to be confused with security funds, which are held as collateral and are typically returned if you’re upgraded to an unsecured card or ever decide to close your account.
Not all credit cards have annual fees, but when they do they can vary widely, so it’s definitely a factor to consider when you’re shopping around for a credit card.
Is a credit card annual fee worth it?
It depends on what you want. An annual fee may unlock additional benefits. However, as the benefits become more exclusive, the annual fee typically climbs higher. A little research into what benefits are offered, and some self-reflection on whether you’ll actually use them, will help guide you.
You’ve got this. We’ve got you.
Annual fees can be an obstacle to building or rebuilding credit. Some people don’t want to add yet another expense to their lives, and some simply can’t afford annual fees. This doesn’t mean they should be excluded from our credit system and not have the opportunity to build a solid credit history.
Capital One wants Canadians to be able to say “yes” to credit and achieve financial freedom, so we mostly offer credit cards without annual fees. That’s consistent with our mission to give all Canadians a fair chance to improve their credit – and change credit for good.
* If Quick Check pre-approves a card, you can be sure we’ll approve your application, except in limited circumstances. Some of the reasons we may not approve your application, among others, include:
a. There’s been a 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.
b. You’re not at least the age of majority in the province or territory you live in.
c. Your application is flagged for fraud prevention.
d. You have an existing Capital One account.
e. You’ve 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®.