Money Smart: Is It Wise To Pay For An Annual Credit Card Fee?
Posted June 20th, 2010 and last modified May 2nd, 2011We look in to credit card annual fees, and whether or not it makes sense to go with a card with an annual fee
A credit card fee can be seen as a necessary evil. However, there are several card options that do not charge an annual fee, but there are drawbacks to those cards too. You will have to evaluate each card and and whether or not the fees are valuable or affordable for your budget. The choice between paying or not paying an annual fee comes down to how you choose to spend your money and what you expect from your card, if you know that the choice is much simpler.
No Annual Fee For Life
HSBC credit card’s No Annual Fee offer is hard to resist. What more if it comes with low balance transfer and purchase interest rates? Apply now and enjoy its benefit.
- $0 annual fee
- 17.99% p.a. on purchases
- 0% p.a. for 6 months with 2% handling fee on balance transfers
- Cash Advance Rate of 21.99% p.a.
- 55 days interest free
- Minimum Income Requirement of $20,000 p.a.
Whether or not to pay an annual fee
Yes, pay an annual fee – If you are interested in big rewards or a high status credit card then paying an annual fee might be your only option. While the fees are high on gold and platinum level credit cards they do pay you back in the rewards programs. Depending on your card you can get free travel and purchase insurances as well as other discounts in perks. In addition, the points programs associated with these cards are often more valuable then those offered by less costly cards. Keep in mind that any of these rewards or benefits are only worthwhile if you are paying your bill in full each month, paying interest quickly cancels out your rewards.
No, do not pay an annual fee - Those people who only use their cards rarely usually prefer not to pay an annual fee. In that case they should choose a no-frills type credit card that offers little in the way of rewards or added benefits. Even with some of these cards you might still be able to get some benefits like free travel or purchase cover. Many credit cards are offering more for less in order to get your business. In some cases you can even get a gold or platinum credit card with no annual fee, these are great deals offering all the prestige and perks of an expensive card for none of the cost.
It is possible to completely avoid paying a credit card fee. But, before you swear them off completely you should take into account the value of those fees. Remember that your credit card can give you something back in the form of rewards and other benefits. When you look at the true value of these items you might find that it is well worth the cost of an annual fee. Some cards will let you pay your annual fee with your rewards points, giving you the best of both worlds. Consider your options carefully and choose the card that is right for you.
Check out today's featured offers:
| Westpac Low Rate | Citibank Clear Platinum | Qantas AMEX Discovery | ANZ Platinum |
 |
 |
 |
 |
0% p.a. for 6 months on purchases & balance transfers |
2.9% p.a. for 12 months |
$0 annual fee Up to 10,000 Bonus QFF Points |
0% p.a. for 6 months on purchases & balance transfers |
|
|
|
|
Subscribe to our newsletter and get "The Ultimate Guide to Balance Transfers"
If You Like This Post...
Get all the latest deals, guides and loopholes go in Credit Card Finder's free bi-monthly email. Don't miss out - join the thousands who get it emailed!
Ask A Question