Does anyone pay annual credit card fees?

[disneysteve]

If you use the cards as they're intended, they often have direct benefits that offset most, if not all of the annual fee.

I think this is really the key.

If you want a card because once a week you buy groceries and put gas in the car, you probably want a basic, no-fee card. If, however, you can find a reward card that you can really take full advantage of, it can be well worth paying the annual fee, even if that fee is several hundred dollars. It doesn't matter if the fee is $500 if you get $2,000 worth of perks from having it.

As I said, our Marriott Visa is $95 and just the free night alone is worth more than that, so as far as I'm concerned, the card is free.

[cypher1]

Funny, I just applied for the Chase Sapphire Reserve card yesterday. I currently have a Capital One Venture card which annual credit fee is 95. Once the I get the Chase card, i'll eventually cancel the Venture card after redeeming my points.

A couple friends use AMX Platinum as well, which they seem to love. I just can't justify the 550 annual fee even with their 200 credit for baggage fees/lounge passes. Whereas Chase is 450 annual fee, but has annual 300 travel credit. So afterwards beings 150 difference for annual is more manageable for me.

And for everyday transactions in the US, AMX is more limited versus Visa/Mastercard. Just last night my buddy couldn't use his card to pay for his dinner. Thats another small factor to be aware of. But I'm sure for others that may not be a concern.

Here is a better breakdown for various travel cards:

https://thepointsguy.com/guide/battle-of-the-premium-travel-rewards-cards/

[~bs]

^

sapphire is also chase, which means that if you have the no fee freedom 5% rotating card, all those points eligible for the 20% redemption discount for hotel/airfare through their site

[LivingAlmostLarge]

Have an alaska card debating keeping it.

[Singuy]

You guys are such noobs. The trick is to get an awesome credit card with a 500+ annual fee but not pay for the fees...ever. if your fees are 25% of the credit limit or more, the fees are waived by federal law. This means you can transfer your credit limit from an annual fee card down to that 25% level to another card that has no annual fee. My friend is rocking this loophole and works like a charm.

http://www.pacer.org/publications/po...edit-cards.asp

Look under fees for the law I am talking about.

[Gailete]

Never! I'm more interested in getting credit card bills paid off currently than seeing what rewards I can get at this point.

[LivingAlmostLarge]

Okay I pulled the trigger and got the Chase Sapphire reserve card with extra person for my DH and I. It was $450 and $75 year. I decided the 1st year sure why not. Why? $300 travel credit means it cost $150 + $75 so $225 a year. But the first year the bonus points make it so that it pays you. Now after this first year I'm not sure sure that it will be worth it. But I am going to try it. I also signed up for the alaska visa card for $75. I got that one with sign up bonus. That way I can get the $99 companion ticket which I figure cancels out the cost of the annual fee.

I'm not so sure about the Chase card but I might as well figure out during this year. DH travels quite a bit so we'll see if it's worth it. We might scale down or next year I'll do the sign up and get the bonus, then we'll switch. I have to add I took huge advantage of the priority pass lounges on our recent trip to london with the kids. We also spent quite a bit on travel so I'm guessing our rewards are going to be a lot. In a year I think we spend around $20k on travel. That's our big indulgence. So we sat there during our layover and I figure $20 for drinks? $40 for snacks? And at the airport you can't bring drinks in and when we aren't visiting the parents I don't pack much. I'll see how the rewards go and then decide.

[ronb]

i only use my debt card...got into a lot of trouble with credit cards...nobody needs the mafia when the card companies will do...also stay away from payday loan people, they will rip you off n stuff.