cancel
Showing results for 
Search instead for 
Did you mean: 

Annual Fees on cards!!

New Contributor

Re: Annual Fees on cards!!

My pass/ fail criteria for whether to continue a card with Annual fee after sign up promotional year is over is very simple.

 

The incremental rewards  from Annual fee credit card should atleast be equal to 133% annual fee. If  I get $80 incremental rewards from a credit card for $75 AF, I would not continue it for a mere $5 per year benefit.

 

For example, Amex BCP gives additional 3% compared to BCE on groceries. I spend $500 on groceries so  I get additional $15 per month over BCE out of which I pay $6.25 for AF. Still a net additional reward of over $100 per year. I will continue with BCP then.

Message 51 of 56
Valued Contributor

Re: Annual Fees on cards!!


nishant1 wrote:

My pass/ fail criteria for whether to continue a card with Annual fee after sign up promotional year is over is very simple.

 

The incremental rewards  from Annual fee credit card should atleast be equal to 133% annual fee. If  I get $80 incremental rewards from a credit card for $75 AF, I would not continue it for a mere $5 per year benefit.

 

For example, Amex BCP gives additional 3% compared to BCE on groceries. I spend $500 on groceries so  I get additional $15 per month over BCE out of which I pay $6.25 for AF. Still a net additional reward of over $100 per year. I will continue with BCP then.


Interesting!  How did you arrive at that?

 

I can see such a rule about APPLYING for new cards, where there is a time factor, plus any concerns about HPs impacting future credit.  A renewal though usually takes no effort, less than cancelling the card, and certainly has the same or less impact on score.   So I guess my rule would be two parts:

 

1) Are benefits > AF?

2) Is this the best use of the money that makes up the AF

 

1.33 seems a high factor to me!

Message 52 of 56
Contributor

Re: Annual Fees on cards!!

I do not think to hard on AF; too stingy, this is how I justify AF.

 

I spend money on a lot of stupid things on a weekly or monthly basis therefore AF is justified. 

Message 53 of 56
Valued Contributor

Re: Annual Fees on cards!!


BearOSO wrote:

I do not think to hard on AF; too stingy, this is how I justify AF.

 

I spend money on a lot of stupid things on a weekly or monthly basis therefore AF is justified. 


Great!

 

Dear BearOSO,

        I would like to tell you about a really exciting offer!!!!  Introducing the BS6054 SUPER-PLATINUM DIAMOND URANIUM (235) Combined VISA/MC/AMEX/DISCOVER card, the first of its kind.   With an industry leading permanent 0% APR, and a theft-preventing credit limit of $0, this card is available for purchases up to the credit limi almost everywhere.    As a busy professional, I'm sure that you already have a wallet full of credit cards and we don't want to inconvenience you by sending you another card, no matter how attractive.   So, for your convenience, please send the first year's annual fee of just $250, and we promise that we will not send you any card at all, or indeed any mail of any sort.  For an additional fee of just $50, we can expedite this!

Thanks

Message 54 of 56
Super Contributor

Re: Annual Fees on cards!!


bs6054 wrote:
 For an additional fee of just $50, we can expedite this!

 

For me, this is a deal breaker.

 

Amex overnight cards to me free or charge!

Message 55 of 56
Highlighted
Valued Contributor

Re: Annual Fees on cards!!


Open123 wrote:

bs6054 wrote:
 For an additional fee of just $50, we can expedite this!

 

For me, this is a deal breaker.

 

Amex overnight cards to me free or charge!


Well, I wish we could, but the expenses involved in rushing "not sending a card" are much greater than simply overnighting a card

Message 56 of 56