9 reasons you shouldn’t automatically ignore a credit card just because it has an annual fee
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It’s easy to not want a credit card with an annual fee because it seems like frivolous money to spend.
But, credit cards with annual fees often have great benefits like travel insurance, cell phone protection, lounge access, no foreign transaction fees, free checked bags, and more.
In the long run, having a credit card or two (or more) with an annual fee might save you money.
Always consider the value of the benefits you are receiving and weigh them against the credit card’s annual fee before deciding to ignore credit cards with annual fees.
Not paying for things if you don’t have to is both common sense and a fundamental tenet of personal finance.
At first glance, this makes credit cards with annual fees seem like a losing proposition when there are credit cards that don’t have annual fees. However, an annual fee isn’t necessarily a reason to turn down an otherwise compelling credit card offer — especially since in some cases, rewards, bonuses, and benefits you’ll receive are worth more than the fee you’ll pay.
Here are a few reasons you shouldn’t automatically ignore a credit card just because it has an annual fee.
1. Significant welcome bonuses
Credit cards that offer huge welcome bonuses — think 50,000-100,000 points or more just for signing up and meeting a minimum spending requirement — are pretty much guaranteed to have an annual fee. Their no-fee counterparts typically have much smaller bonuses, if they offer anything at all.
For example, the no-fee Chase Freedom usually offers $150 in cash back (or 15,000 points) after you spend $500 on purchases in your first three months of opening an account, while the more expensive …read more
Source:: Business Insider