There are credit cards that require an annual fee. There are also credit cards that have no annual fee attached to them.
As you search for and compare offers, you must decide if you’re willing to pay this fee once per year. The answer typically comes down to one detail: what are you getting in exchange?
If all other details are identical, it goes without saying that it doesn’t make sense to pay an annual fee.
Conversely, if you can pay the fee and get something unique in return, such as a better rewards program, it may be worth the money.
With all this in mind, here are five basic steps you can take:
• Make a list of the top credit cards with an annual fee.
• Make a list of the top credit cards that don’t charge an annual fee.
• Become familiar with the features and benefits associated with each offer.
• Decide “how much is too much” in regards to the fee.
• Make a final decision.
While all of these steps are important, don’t overlook the fact that some credit cards have a higher annual fee than others. Whereas one card may charge $100, another could set you back $500. This is a big difference that must be taken into consideration.
There always has been and always will be credit cards that charge an annual fee. As long as you like what you’re getting in return, you can feel comfortable parting with this money once per year.
Do you carry this type of credit card? Do you get enough value to make up for the annual fee? Share your thoughts in the comment section below.