Dear everyday spender,

Risk vs. Reward: Those pesky annual fees, are they worth it?If you’re new to credit, tread lightly… but, for everyone else, the answer is: yes, they most certainly can be!

I want to impart some perspective.  Think of the annual fee like a subscription service; what you’d pay for a gym membership, or an online streaming service. In those terms, we can weigh the cost vs. benefit.  Ask yourself: Is the cost worth it?  Will I use this subscription in such a way where I will benefit, in this case financially?

As the name implies, annual fees should be evaluated on a yearly basis.

And be prepared to pay the annual fee upfront, BEFORE you earn the predicted rewards.  Also, by the time you’ve had the card for a year, expect to be paying on, or around, your anniversary date for the following year.

In some cases, the credit card company may waive the annual fee for the first year.

Hint: There are cases where individuals asked their credit card company to waive the annual fee, and the company actually did!  It doesn’t hurt to ask, huh?

 

Risk vs. Reward:  Those pesky annual fees, are they worth it?