Will annual fees turn you off credit cards?
Frankly, I think it was a bluff. I think the credit card companies were hoping to create a public outcry. Congress would have it heed the constituents' opinions, and the the law would be thrown out.
Of course, even if this had been a bluff, the fact is that no one flinched. I mean, plenty of PF bloggers commented. But overall, we welcomed the changes to the industry.
That makes me wonder if the companies won't follow through on their threats. After all, we proved that we're willing to survive harder credit terms, if it goes hand-in-hand with a more level playing field. So why wouldn't the companies try some of the ideas?
At least in the short term, I would need to keep two cards: one with the balance we're carrying, one for any new charges we have to put through. In the end, I do agree with my mom that two cards is generally a good idea (link). But I would probably keep it to that.
So for me, annual fees aren't enough to make me give up credit cards, even if we could afford to right now. But it has affected which cards I might keep. Tim and I recently decided to get rid of one of our cards. Originally, we had decided to nix the United Airlines card we have through Chase. I had signed up for one to help us get free tickets for our honeymoon. (I had my mom get one too, so we had enough for two people's plane fare.)
We had chosen the United card because it has an annual fee. The fee is payable with rewards miles, but it's still unpleasant to lose potential rewards. Now that annual fees may become commonplace, though, this may become an appealing option.
So what about you? Will you pony up for an annual fee? Will you swear off credit cards altogether? For that matter, do you think the credit companies will follow through with their threats?