How much Spending warrants an Annual Fee Card?

[Anonymous]

Going off the other thread asking how much people pay in AF's, how much in total spending do you think is recommended/required to have a card that has an AF?

Take my situation for example. In total, I spend approximately $13K a year. I have been kicking around the idea of getting an Amex PRG or Platinum card. But do I even spend enough to make up for the Annual Fees?

What say you MyFico? How much do you need to spend a year to truly make up for the AF and still come out ahead?

[Open123]

In my view, at $13K annual spend, you shouldn't focus on rewards/dollar spent, but rather on bonus and benefits.

For instance, $13K is enough for about 5 large sign-up bonuses.  

Or, an does an Amex Plat/Prestige's benefits exceed the cost?  $400/$500 in airfare, 50K/100K MR/TY Points, global entry and louge access worth the $450 fee?  If yes, then get the card.  If no, then pass.

In either case, all things equal, with $13K annual spend, focus on sign-up bonuses.

[Anonymous]

All things being equal I just dont believe in having cards that have an annual fee because honestly there are too many great cards with no AF. Although I do know someone who pays an annual fee on their travel rewards cc because she says she gets more out of it in rewards than that small 49 af that she pays. Personally I dont want to pay it. My spend is similar to yours though so maybe people who use cc's for business or on a larger scale it would make sense. 

[Anonymous]

Also depends on what you spend your money on. Amex Blue Cash Preferred gets 6% cash back on groceries, up to $6k spent. So if you spend $6k on groceries, you'd get $360 back, which is well over the $95 AF.

[Anonymous]

I probably put close to $40k to 50k on myour cards so I would say yes it's worth it. In your case I would probably stick to Freedom or QS.

[kdm31091]

Your spend is fairly low and generally speaking that kind of spend is suited better to no AF cash back type of cards.

[Anonymous]

I don't believe in telling people what to do with their money. I agree with the poster who said look at the benefits and decide what works for you. When I first got on this site, I read a post from somebody who app'd for a card, and then closed it because when they got it they thought it was ugly. There are plenty of cards to choose from. I personally wouldn't have a "hotel" card if I didn't stay in a hotel but there are certain people who want those things and who are we to say "you can't justify an AF card because you don't spend enough." Only you know what works for you.

[UncleB]

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@Anonymous wrote:

Going off the other thread asking how much people pay in AF's, how much in total spending do you think is recommended/required to have a card that has an AF?

Take my situation for example. In total, I spend approximately $13K a year. I have been kicking around the idea of getting an Amex PRG or Platinum card. But do I even spend enough to make up for the Annual Fees?

What say you MyFico? How much do you need to spend a year to truly make up for the AF and still come out ahead?

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This is a really open-ended question... there are many more variables than simply your total yearly spend.  My answer to your question would depend greatly on your own personal goals, spending habits, and even preferences.

To give you a 'thumbs up' or 'thumbs down' now would be like pulling an answer out of a hat, and wouldn't be very meaningful. 

[Anonymous]

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@kdm31091 wrote:
Your spend is fairly low and generally speaking that kind of spend is suited better to no AF cash back type of cards.

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+1

[Anonymous]

Good discussion. I know the question is open ended. It just gets people to post their opinions on the matter