Annual fees are usually charged on your card's anniversary date — the same day each year that you opened the account
Most credit card companies charge the annual fee once per year, on the date your account was opened. If you opened your card on March 15th, you will see the fee hit your account on March 15th of the following year, and every year after that. Some issuers charge it at the start of your billing cycle instead, so the timing can shift slightly depending on your card issuer's system.
The fee appears as a separate charge on your statement, listed by name — often just "Annual Fee" or "Card Member Fee". It is not bundled into your regular purchases or interest charges. You can see exactly when it posted by reviewing your statement from that month.
Not all credit cards have annual fees. Many everyday cards charge nothing. Cards that do charge annual fees — typically premium travel cards, business cards, or cards with high rewards rates — usually tell you the amount upfront before you open the account.
Key Takeaways
- Annual fees post on your card's anniversary date, which is the same day each year that you opened the account.
- The fee appears as a separate line item on your monthly statement, not mixed in with purchases or interest.
- You can find your exact anniversary date by looking at your account opening date in your card's online portal or your first statement.
- Some cards waive the first-year annual fee, so the charge may not appear until your second year of membership.
- Calling your card issuer before your anniversary date sometimes results in a fee waiver or a retention offer if you have been a good customer.
How to find your card's anniversary date
Log into your card issuer's website or mobile app and go to your account details or account information section. Your opening date should be listed there. If it is not visible in the main account view, check your statements — your first statement will show the date you opened the account.
You can also call the customer service number on the back of your card and ask when your annual fee will be charged. The representative can tell you the exact date and the exact amount.
What happens if you do not pay the annual fee
If the annual fee posts and you do not pay it, it becomes part of your card balance. You will owe interest on it just like any other unpaid charge. Your minimum payment will increase to cover it, and if you ignore it long enough, it will be reported to credit bureaus as a missed payment, which damages your credit score.
The card issuer will not close your account when ready for an unpaid annual fee, but they may eventually suspend your account or send it to collections if the balance goes unpaid for several months. It is simpler to either pay the fee when it posts or call to discuss your options before the charge appears.
First-year fee waivers and when they expire
Some cards advertise a first-year annual fee waiver, meaning you will not be charged during your first 12 months. The fee kicks in on your second anniversary. If your card had this offer, you should see the charge appear exactly one year after your opening date.
A few cards waive the fee for the first two years, but this is less common. Read your card's terms or log into your account to see whether a waiver was part of your offer. If you are unsure, call the issuer and ask how many years of waiver you received.
Negotiating or removing the annual fee
Call your card issuer a week or two before your anniversary date and ask whether they can waive the fee or offer you a retention bonus — a statement credit or extra rewards points to keep the card open. Card companies often have authority to waive fees for customers with good payment history and account activity.
Be direct: "My annual fee is coming up on [date]. Can you waive it or offer me something to keep this card?" If the representative says no, ask to speak with a supervisor or the retention team. Different departments have different authority levels.
If the issuer will not budge and you do not want to pay, you can close the card after the fee posts. You will still owe the fee, but you will not be charged again next year. Some people pay the fee, use the card for a month or two to earn rewards, then close it — though this only makes sense if the rewards earned exceed the fee amount.
Annual fees on business and premium cards
Business credit cards and premium personal cards often have higher annual fees — sometimes $95, $150, $250, or more. These cards typically offer rewards, travel credits, or other perks meant to offset the cost. The fee still posts on your anniversary date, and the same negotiation tactics explore.
If your business card's annual fee is high, review what benefits you actually used in the past year. If you earned $200 in travel credits but paid a $150 fee, the card paid for itself. If you earned nothing and paid the fee, it is worth calling to negotiate or closing the account.
Frequently Asked Questions
Can I get my annual fee refunded if I just paid it?
Yes, sometimes. If you paid the fee within the last 30 to 60 days, call and ask for a refund. Explain that you did not realize the fee was coming or that you want to close the account. Many issuers will refund a recent fee as a one-time courtesy, especially if you have been a long-term customer.
What if my card has no annual fee now but starts charging one?
Card issuers can change terms, including adding an annual fee, but they must notify you in writing before the change takes effect. You will receive a notice in the mail or through your online account. You have the right to close the card before the new fee applies without penalty.
Do I have to pay the annual fee if I do not use the card?
Yes. The annual fee is charged whether you use the card or not. It is a yearly membership cost, not a usage fee. If you do not want to pay it, close the card before your anniversary date.
Will closing my card before the annual fee posts hurt my credit?
Closing a card can lower your credit score slightly because it reduces your total available credit, but it is not a major hit. If avoiding the annual fee is important to you, closing the card is a reasonable choice. The impact is usually small and temporary.
Can I move my anniversary date to a different time of year?
No. Your anniversary date is locked to the day you opened the account and cannot be changed. Some issuers may allow you to close and reopen an account to reset the date, but this will hurt your credit score and is not worth doing just to shift when a fee is charged.