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Does an Annual Credit Card Fee Ever Make Sense?

Does an Annual Credit Card Fee Ever Make Sense?

February 1, 2017
annual credit card fee

Some credit cards have no annual fees. Some have low fees. But a lot of them have high fees, so high that they might make you wonder if you need a credit card at all. So why do people get these types of credit cards? The short answer is because these cards also offer some benefits that make the high annual fees worthwhile. But that’s not all.

An annual credit card fee definitely makes sense if what you get in return is of higher value than the fees you have to pay. But what this really comes down to is spending. If you won’t spend at least a moderate amount of money, you probably won’t break even.

With annual fees, the more you pay, the more you get. And, if you pay enough, you can get a more exclusive card, one that comes with some really interesting perks, such as airline tickets, concierge services, and VIP access to different events. The fees for these types of cards tend to roun into the hundreds of dollars, however. But, depending on how you use the card, they might actually be worth it. Frequent travelers, for example, might find such a card extremely helpful.

No matter if you have a premium or a standard credit card, one of the biggest perks offered it the rewards points program. If you buy enough stuff with your credit card, you can get a lot of other items for free. Again, it all depends on how you use your card.

The bottom line

An annual fee represents an amount of money that you have to pay. If that amount of money turns into something that you can benefit from, it might make sense to pay it. But if you only use your credit card rarely, then you might want to get one with no fee at all.

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