Annual Fee Question

[Anonymous]

Since I am so "anti-annual fee", I'd be interested in knowing from those of you who do pay annual fees for your cards, why you chose a card with an AF and what's the benefit of it?  I'm really curious because there are so many cards out there that don't require an AF.

Thanks in advance for the feedback.

MsQB

[Creditaddict]

I pay it on amex because in 1 month I get enough rewards back to pay that!!!!

I pay it on my USBank Signature card because it use to be a black card and I thought it was hot, closeset I will get to a black credit card!! (amex!!) now I just keep it because I have had it for so many years and has been a GREAT card to me.

[Watchmann]

I'm anti AF as well.  That said,  I pay for the AMEX Gold Rewards Plus, and have been doing so since 1980.  It's my oldest TL, so I just keep it and pay the annual fee (old habits die hard).   But I'd never pay for a Visa or MC.

[Anonymous]

Those who are building or rebuilding their credit often have little choice other than to accept cards with AF.

Once they have moved beyond those starter cards, however, an AF can still be worth paying if the rewards make it worth it.

For example, Chase Freedom has no AF, but the 3% rewards tier is limited to the top three monthly spending categories and $600 in spending per month.  Chase Freedom Plus has an AF of $30 but the 3% rewards tier applies to the top six categories and is not capped.  For those who routinely hit the Chase Freedom $600 spending cap, it will usually be worth paying $30 a year for the benefit of having no rewards caps.

The AF cards I currently have and will gladly pay an AF for are:

Amex Gold Delta SkyMiles (AF $95, waived the first year).  Reason: This card pays for itself many, many times over.

Citi Platinum Amex (AF $125, waived the first year).  Reason: Lounge access and annual complimentary domestic companion ticket.

[Anonymous]

Only my Amex Green and Delta have AF's-

The rewards outweigh the AF's-

[Anonymous]

As with anything else, the rewards have to be weighed against the cost.

If you're rebuilding, then annual and sometimes even monthly fees are something "up with which you have to put," unfortunately.

But if your FICO is over 710 or so, and you've got no baddies in the past 3 years, then you really shouldn't have to pay more than a token annual fee, if any at all...unless, of course, the card is one of those that shovels out a lot of rewards.