Posted by
Message
HailToTheChiz
Auburn Fan
Back in Auburn
Member since Aug 2010
28440 posts

Credit Card Annual Fee - How do you justify it?
Genuinely curious. I currently have AMEX Blue, but thought about upping to a different card to take advantage of more rewards, benefits etc. Current card is 1x, when the Gold Card could be 4x, for example.

However, my annual fee is currently $0. The Gold has $250 a year.

Now, there is a $120 dining credit that can be accumulated ($10 a month).

Do the perks justify the annual fee? Will the reward points justify upping? I just have a hard time getting a card with a fee.

All that being said, I pay off the card every month.


HollierThanThou
New Orleans Saints Fan
Member since Jan 2012
4910 posts
 Online 

re: Credit Card Annual Fee - How do you justify it?
For that card specifically you get the 4x categories + $10 monthly dining credit + $100 annual airline credit.

If you actually use the credits the card's fee is brought down to $30 for very nice 4x categories.

If you signup for the Gold card, rather than changing from the current card, and can spend $2000 in 3 months you can also get the 50k signup bonus through referral, worth a minimum of $500.
This post was edited on 12/6 at 3:43 pm


Replies (0)
Replies (0)
00
TexasTiger39
Member since Mar 2009
3468 posts

re: Credit Card Annual Fee - How do you justify it?
Card I have is annual fee of $95 and gives you a free hotel room annually. That room is about $130.

Nevermind all the points and stuff.
This post was edited on 12/6 at 3:54 pm


Willie Stroker
Longwood Fan
Member since Sep 2008
6792 posts

re: Credit Card Annual Fee - How do you justify it?
I have a Marriott rewards card. The annual fee I think is around $85 (first year is $0).

Being a cardholder entitles you to a free night at any Marriott Category 5 or lower hotel. At a Cat 5, the annual fee is lower than the standard room rate. This makes it easier to pay for hookers and blow.

Terms may have changed. I’m guilty of not looking in quite some time


Replies (0)
Replies (0)
40
baldona
Auburn Fan
Florida
Member since Feb 2016
7844 posts
 Online 

re: Credit Card Annual Fee - How do you justify it?
It obviously depends on your situation, but you gotta know on average it’s not justified. They are obviously making more on charging it on averaging than the perks are worth, or why do it?

As said if you get considerably better perks like a free hotel room and you absolutely will use it, then absolutely. If it’s questionable, I’d say no.


Rendevoustavern
LSU Fan
X109
Member since May 2018
189 posts

re: Credit Card Annual Fee - How do you justify it?
I have two loyalty cards because due to corp travel. Essentially, I have two cards and pay the annual fee (cumulative $200) and reap the benefits of earning 5x points for airfare and hotels (United & Marriott). In the first two years, I earned round trip airfare on points to Hong Kong from MSY. Then, regular room through Marriott only to be upgraded due to status all on points.

So, what would have been a $4,500 trip cost me $400 in annual fees and a normal work schedule. If I didn't have a job that required travel I would not have a credit card. IMO, they don't build credit as fast/effectively as secured forms of credit.



Replies (0)
Replies (0)
00
lynxcat
Rutgers Fan
Member since Jan 2008
19790 posts

re: Credit Card Annual Fee - How do you justify it?
I have the Chase Sapphire Reserve...I think the annual fee is $450 but it gets recouped rapidly. $300 in travel related costs (including Uber/Lyft rides), free global entry ($100 value...use every 5 years), priority pass access (lounges at airports, 3x pts on travel and dining...etc.

I got 100k pts for signing up which is around $1500 in value. In short, it pays for itself rather quickly.


foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
40020 posts

re: Credit Card Annual Fee - How do you justify it?
quote:

I have the Chase Sapphire Reserve.


Same here. In addition to what you mentioned there's the free lounge access. Between that and sailing past security with TSA pre-check and you won't have to associate with the peasants and their crying kids until you board the plane.


Replies (0)
Replies (0)
20
Odinson
LSU Fan
Asgard
Member since Apr 2014
1976 posts
 Online 

re: Credit Card Annual Fee - How do you justify it?
It’s tripple dip season.


Replies (0)
Replies (0)
00
StringedInstruments
Auburn Fan
Member since Oct 2013
9662 posts

re: Credit Card Annual Fee - How do you justify it?
I don’t have any annual fees with my Wells Fargo credit card. But I also understand that I’m probably not maximizing my potential savings by switching.

I get a point for every dollar spent. Just got $500 in gift cards for 50,000 points. It’s easy for me to keep up with and gets us what we want when we want it.


Replies (0)
Replies (0)
00
TD SponsorTD Fan
USA
Member since 2001
Thank you for supporting our sponsors
Advertisement
tiger chaser
LSU Fan
Stewart, Ms
Member since Feb 2008
6397 posts

re: Credit Card Annual Fee - How do you justify it?
0 annual fee. Really don’t know why you would want to pay a fee to begin with.


lynxcat
Rutgers Fan
Member since Jan 2008
19790 posts

re: Credit Card Annual Fee - How do you justify it?
Because the benefits outweigh the cost?
This post was edited on 12/7 at 4:23 pm


Replies (0)
Replies (0)
60
GeorgeTheGreek
Michigan State Fan
Sparta, Greece
Member since Mar 2008
52231 posts
 Online 

re: Credit Card Annual Fee - How do you justify it?
Because I make more on cash back or 2x travel than the cost of the annual fee.

Then throw in the perks and I’m happy.


Replies (0)
Replies (0)
01
CptBengal
USA Fan
BR Baby
Member since Dec 2007
68998 posts
 Online 

re: Credit Card Annual Fee - How do you justify it?
quote:

Do the perks justify the annual fee? Will the reward points justify upping? I just have a hard time getting a card with a fee.



Toky pay off your card every month so it doesn't matter if there's a fee provided you can get a good effective annual fee.

Let's look at a couple cards:

1. Chase Sapphire Reserve
450 annual fee
300 travel credit
Global Entry (100 every 5 years)

EAF = 450 - 300 = 150 per year with 3x on drinking, dining, and travel. Plus perks

2. AMEX Platinum
550 annual fee
200 travel credit
200 Uber credit
100 yearly Saks credit

EAF = 550 - 200 - 200 - 100 = 50 per year plus all perks and benefits

So you see that the cards aren't actually that expensive to start.... then you add in points and multiples of points and it's paying you.


hiltacular
Georgia Tech Fan
CHI
Member since Jan 2011
14487 posts

re: Credit Card Annual Fee - How do you justify it?
quote:

They are obviously making more on charging it on averaging than the perks are worth, or why do it?

They are counting on the majority of the public not paying off their cards in full each month and not maximizing the perks/points associated with the card.

I would say the two above items would not apply to the majority of the posters on this board which is why most should be using the cards.


lynxcat
Rutgers Fan
Member since Jan 2008
19790 posts

re: Credit Card Annual Fee - How do you justify it?
If you don't pay off your card every month, then it doesn't matter what perks are included...you will get roasted.

This board as a bias towards assuming the card is paid off each month.


Replies (0)
Replies (0)
40
weagle99
Valparaiso Fan
Member since Nov 2011
27964 posts

re: Credit Card Annual Fee - How do you justify it?
quote:

would say the two above items would not apply to the majority of the posters on this board which is why most should be using the cards.





I like the board but I’m not sure. Somebody in this country is accounting for the billions and billions of debt.


Replies (0)
Replies (0)
00
brian_wilson
LSU Fan
Member since Oct 2016
2809 posts

re: Credit Card Annual Fee - How do you justify it?
I have a united plus mileage card. I get free checked bags, and ability to board early plus two red carpet club passes. Plus bonus miles when I use the card.

This to me is worth the $95.


Replies (0)
Replies (0)
00
HailToTheChiz
Auburn Fan
Back in Auburn
Member since Aug 2010
28440 posts

re: Credit Card Annual Fee - How do you justify it?


CptBengal
USA Fan
BR Baby
Member since Dec 2007
68998 posts
 Online 

re: Credit Card Annual Fee - How do you justify it?
The right card is a function of your spending patterns. For example if you dont use uber, then the EAF for the Amex Platinum is 250.

Personally I use uber, get a couple gifts for the misses every 6 months from saks, and travel frequently so the card more than pays for itself.


first pageprev pagePage 1 of 2next pagelast page

Back to top

logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram