RIVERWOODS, Ill.—Two-thirds of consumers take into consideration whether a card has an annual fee when deciding to apply for that card, a new report reveals.
The study from Discover–which, it should be noted–does not charge annual fees–also found 60% said having no annual fee is a major factor in their decision process, reported Value Penguin in its analysis.
Among respondents who were currently considering switching credit cards, 54% said the reason was to avoid paying an annual fee—the No. 1 reason given.
More than a third of respondents—37%—have already closed a credit card because it has an annual fee, the study shows.
“Interestingly, about a third of respondents who chose a card with an annual fee began to regret it after the one-year mark of having the card,” Value Penguin said.