Do issuers usually charge a fee to participate in rewards programs?

About reward card fees

The allure of reward credit cards is that you can earn nice extras just by using your card to make purchases. One unfortunate aspect of reward credit cards, however, is how some credit card companies tack on extra fees or a higher interest rate to these cards and justify the additional fees because of the rewards earned by the cardholder.

Before you accept extra fees and a higher interest rate as a simple fact of life, you should know that not every reward card has these higher costs attached. Although it is true that cardholders with bad credit will most likely encounter higher fees when obtaining a reward card, people with bad credit will usually pay higher fees and interest rates with any type of credit card.

Cardholders with excellent credit, however, may be able to find a reward card with relatively low interest rates and either no fees or very low fees. You should not assume that you will have to pay an annual fee or point redemption fees.

Instead, take the time to research the available reward credit cards and find a card that does not charge extra fees and high interest rates.