Comprehensive Coverage Options Ways to Lock in Lower Homeowners Insurance Premiums How to Choose the Right Life Insurance Policy Compare the Different Types of Health Insurance Plans Popular Reviews Progressive GEICO State Farm AIG Allstate Before applying for a credit card, be sure to review the card's offerings and make note of any annual fees that might be charged on your account.Banking Best Products Best Savings Accounts Best Checking Accounts Best CD Rates Best Money Market Accounts Best Business Checking Accounts Best Student Checking Accounts Calculate Checking Accounts 101 Emergency Savings Calculator Compare CD Rates Checking Accounts Personal Loans Best Products Best Personal Loans Best Debt Consolidation Loans Best Home Improvement Loans Best Medical Expenses Loans Calculators & Guides Personal Loans Calculator Guide to Personal Loans Guide to Refinancing Student Loans How to Consolidate Credit Card Debt Popular Reviews Upstart Payoff Sofi Lending Club Investing Best Products Where to Invest Money Best Brokerages Best Robo Advisors Read & Learn Investing 101 How to Buy First Stock How to Invest in Mutual Funds How to Pick a Financial Advisor How Much to Save for Retirement Popular Reviews Betterment Merill Edge Wealthfront Insurance Best Products Best Auto Insurance Best Home Insurance Best Life Insurance Best Health Insurance Read & Learn Figure Out How Much Auto Coverage You Need Collision vs. If you do not plan on taking advantage of these perks or find that these perks are not useful for your lifestyle, you may want to look into credit cards with zero or low annual fees. However, whether the annual fee is worth it depends on how many perks you plan on redeeming. Credit cards that charge annual fees typically offer special vouchers, statement credits, and higher sign-up offers than cards that do not charge high annual fees. You can balance out the cost of an annual fee by taking advantage of cardmember perks and benefits. These perks may include free checked bags (which can save you between $50-100) or a complimentary hotel stay after your cardmember anniversary. Perks: Your travel or general credit card may offer perks that make it more affordable and convenient for you to travel. This is usually awarded as a statement credit reimbursement for travel purchases made with the card. Travel credit: If your travel credit card provides a yearly credit toward travel (for example $300), this already begins to squeeze value out of a $550 annual fee. If you travel abroad or shop through international merchants frequently, you may find this worthwhile as foreign transaction fees can equal between 2-5% of the entire purchase amount. No foreign transaction fees: If you're paying for an annual fee, your credit card company may not charge you for foreign transaction fees. Some credit cards may offer annual fees because they offer some of the following perks: Your credit card may charge you a fee (which can range from $49 to $550) each year for being a cardmember and for providing miles, cash back and reward points programs. You can figure out if an annual fee is worth it by taking into account the perks most important to you and weighing them against the cost of the fee itself. These optional sign-up offers may come with some limitations and rules in terms of eligible purchase categories. Through a sign-up offer, a set of reward points can be earned once a spending requirement is met within a set number of months of opening a new credit card account. Some credit cards that charge annual fees may also offer new cardmembers the opportunity to earn a new cardmember offer, which can help cardmembers earn reward points. Although a hefty annual fee may seem daunting at first, keep in mind that these fees can be offset by taking advantage of perks and benefits offered by the credit card issuer. You're more likely to find that credit cards with lucrative reward programs charge this annual fee for maintenance and administrative costs. Some credit cards come with an annual fee.
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