Are Credit Card Annual Fees Worth It?

With annual fees on credit cards rising—often without additional benefits—it’s more important than ever to ask: Is it really worth it?   Just this week, Chase announced a hike in the annual fee for one of its premium cards, jumping from $550 to $795. That’s a big leap, especially if you’re not seeing a matching increase in value.
 
Here are a few key things to consider before paying an annual fee:

✅ Do You Get More Value Than You Pay?
 
Even better—are you getting at least double the value?
 
Personally, I have the Marriott Bonvoy Card, which has a $95 annual fee. It’s one of the few cards I’m willing to pay for each year because I consistently get far more value in return:
 
Free Night Award: Every year, I get one free night at a Marriott property—usually valued at $200 or more.
 
Bonus Points: I earn significantly more points when staying at Marriott hotels, which stacks with my elite status. These points have often led to additional free nights.
 
When the math works out like that, the card pays for itself—twice over.

✅How Easy Is It to Use Your Rewards?
 
Some cards make it hard to cash in on rewards. Watch out for these red flags:
 
You’re forced to use their travel portal, where prices are inflated.
 
You don’t earn rewards when booking through that portal.
 
Redemption options are limited or confusing.
 
Make sure you understand how—and how easily—you can use your rewards. If it’s a hassle, it’s probably not worth it.

💵 Cash Back Cards: Skip the Fee
 
If you’re just looking for cash back, you don’t need to pay an annual fee. There are plenty of great options out there:
 
Discover It®: 5% back on rotating categories (up to the quarterly limit, then 1%).
 
Multiple Cards: A straightforward 2% back on all purchases.
  
These have no annual fee, so you’re keeping more of your money in your pocket.

💡 Pay in Full Every Month
 
Here’s the bottom line: Rewards are only valuable if you’re not paying interest.
 
If you carry a balance, any rewards you earn are quickly wiped out by interest charges. Credit card companies count on this—offering attractive rewards to encourage spending, knowing many users won’t pay in full.
 
The smart play? Use the rewards, not the interest. Pay your balance in full each month to truly benefit.

Final Thought
 
Annual fees can be worth it—but only if you’re getting clear, tangible value in return. Do the math, consider your lifestyle, and choose the card that gives you the most in return for what you pay.
 
Let your credit card work for you—not the other way around.

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