💰 Are Credit Card Annual Fees Worth It?

Let’s talk about something nobody likes to pay… but might actually be worth it: credit card annual fees. Spending $95—or even $695—just to have a card might seem crazy, especially when so many options are “free.” But here’s the truth:

If you use the perks, the fee can more than pay for itself.

Here’s a quick breakdown to help you decide if it’s worth it:

When an Annual Fee Makes Sense

• You travel often and use perks like lounge access or travel credits
• You earn more in rewards than the fee costs
• You spend in bonus categories like travel, dining, or groceries
• You value extras like TSA PreCheck, concierge services, or insurance coverage

When to Skip the Fee

• You don’t use the perks enough to justify the cost
• You prefer simple, flat-rate rewards
• You’re rebuilding credit or sticking to a tight budget

How to Know if It Pays Off
Do a quick calculation:

• Add up the value of rewards + perks
• Subtract the annual fee
• Compare it to a no-fee card’s earnings
  

If the result is a net positive, you’re winning.

Pro Tip:
Not ready to commit to a fee? Great no-fee cards still offer awesome rewards without the upfront cost. Compare all your options here.

Bottom line:
Don’t just look at the fee—look at the value. A high-fee card could actually be the smarter choice if it fits how you spend.

VIDEOS YOU MAY HAVE MISSED THIS WEEK

Here are the top videos you loved the most this week. Which one was your favorite?

Milan Singh may earn affiliate commissions from the links mentioned. All recommendations and opinions are Milan’s own. This may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers.