If you are paying annual fees on your credit card and are asking yourself if it is worth it then read on.
Most people who get a cash back or balance transfer credit card should not be paying an annual fee. There are just too many good low interest or 0% intro apr credit cards out there to choose from with no annual fees. Unless the credit card offer really high points in a category you spend allot of money then get the no annual fees card.
When you start running into the debate with annual fees is usually on premium travel Credit Cards. No if you are flying regularly or your family travels frequently an annual fee can quickly pay for itself.
Baggage fees alone really add up these days on most of the top airlines. Things like travel insurance and automatic rental car insurance on these cards is a nice perk that saves you money.
You can also get great deals on rental cars and hotels when you use many of the American Express Credit Cards. This can add up quickly over time and can get you nice upgrades on your vehicle or even preferred treatment on hotel room upgrades.
These cards can also build up rewards point quickly that can be used towards airline tickets, rental vehicles and hotels.
So even though most of the airline miles credit cards waive that annual fee for the first year, you will be paying it in the second year and just have to understand it.
If you really go through all the card benefits for your airline miles or travel credit card I think you will find the annual fee can be minimal. But you have to review all the benefits and do the math. If you see that based on the amount you and your family travel on a certain airline and their partners adds up to a significant expense, these cards can save you hundreds or even thousands over the course of a year.
In this case apply for the card and accept the annual fee. If you don’t travel often you should just opt for the no annual fee credit cards.