Annual Fee vs APR

[MMart078]

Would it ever be justified to pay an annual fee for an exceptionally low APR for life. Lets say like an AMEX platinum charge card you know how it charges $450 what if for that fee they let you carry a balance every month with no interest rate? (effectively making a Credit Card)

[Creditaddict]

I have no issues paying annual fees but I guess that's just because I have had really good credit and really bad credit and the fastest way to rebuild sometimes costs some money!

However if credit was never the issue, I think I would be a little more selective with my fees I would pay beyond my Amex Charge 

[wmarat]

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@MMart078 wrote:
Would it ever be justified to pay an annual fee for an exceptionally low APR for life.NO Lets say like an AMEX platinum charge card you know how it charges $450 what if for that fee they let you carry a balance every month with no interest rate? (effectively making a Credit Card)

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[MMart078]

ok, please elaborate on your opinion.

[Watchmann]

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@MMart078 wrote:
Would it ever be justified to pay an annual fee for an exceptionally low APR for life. Lets say like an AMEX platinum charge card you know how it charges $450 what if for that fee they let you carry a balance every month with no interest rate? (effectively making a Credit Card)

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The cheapest credit is a PIF type of arrangement, but if you HAVE to carry a balance it certainly could be advantageous to have a fee based credit card with a low % rate rather than a fee free card with a higher APR.  You just have to do the math to see which is better. 

[MMart078]

my thoughts exactly

[Anonymous]

In the end, though, the lender computes "return on investment" as a percentage, not just a dollar amount.  And the reason is there is a proportionate cost of capital.  To make it fee based, they would have to limit your CL based upon your AF in order to make the numbers work.