Why do some credit cards have an annual fee?

Cards that have an annual fee often form partnerships with various service providers, like hotels, airlines, and merchants, in order to give their customers discounts. It’s possible that the advantages of a credit card with an annual charge will considerably surpass the cost of the fee itself for those who buy a lot, travel regularly, or perhaps simply enjoy staying in hotels.

However, for those who do not often partake in the luxurious lifestyle, credit cards that do not have an annual fee make the most sense.

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