Annual Credit Card Fees - When Is It Worth It to Pay Them?

Annual credit card fees are an expense that most people prefer not to pay. However, the most expensive credit cards typically offer the best rewards. Before applying for a credit card, it's crucial to weigh its overall value to your financial wellbeing. The following perks make it worth paying these annual fees.

1. Cashback rewards

Credit card fees make sense if you spend significantly on household groceries, dining, and other specific categories. That’s because the cash you earn back outweighs the card’s annual maintenance cost. Before signing up, compare these fees against the potential rewards using your current spending patterns.

2. Sign-up bonus

Some rewards programs offer a sign-up bonus that cancels the annual credit card fees, sometimes for multiple years. Most issuers peg these bonuses on specific spending targets in a given period. Your yearly savings can be higher than the corresponding card maintenance fees.

3. Travel rewards

Although the ideal travel rewards card might cost hundreds of dollars annually, it makes sense if you’re a frequent traveler. You can redeem enough points to subsidize your flights, hotel stays, and other aspects of your trips. Most airlines provide co-branded financial products whose perks outweigh the associated credit card fees. Some hotels also offer these benefits to loyal guests. If you are constantly on the road, they can give you the feeling of being home away from home. Additional perks include complimentary breakfast and priority access to airport lounges. You may opt for a general travel card to explore the benefits of various airlines or hotels. It conveniently allows you to redeem your rewards at any participating provider. In addition to airlines, some include travel by rail, car, and cruise ship.

4. Building credit

If you have poor credit, you can strategically use a credit card to rebuild and even improve it. A card with annual fees is your best option because you might not qualify for cheaper alternatives. You can take various steps to ensure the expense doesn't affect your financial health. They include making timely payments and maintaining low credit utilization rates.

Clark County Credit Union offers several financial benefits to its members, including the CCCU Rewards program. The associated credit card fees are negligible compared to the perks. They include cashback, travel experiences, gift cards, and merchandise. Sign up today for the best financial solutions in Clark County.