More often than not, paying a credit card annual fee may not make a lot of sense. Most times, the benefits and rewards you get in exchange for annual fees aren’t justifiable.
So, most people often prefer billig kredittkort (cheap credit card) that doesn’t have yearly charges attached to it. However, onfew occasions, the benefits that are offered are worth the annual fee.
In these few situations, paying a kredittkort annual fee would be a wise move. Below, we will give different cases where this extra expense is worth it.
1. You Are Being Offered a Substantial One-Time Bonus
If you are being offered a substantial bonus when opening the account that is more than what you’d pay as an annual fee, then the extra fee shouldn’t be an issue.
Some common rewards that can be classified as substantial bonuses include:
- Frequent flyer miles that can be converted for a roundtrip flight
- An impressive statement credit to offset some purchases
- Points that you can redeem for travel expenses or gift cards
As far as the bonus exceeds the extra charge, then it’s a good deal. But if it’s the same amount or lesser, then you won’t benefit anything from applying for it. For instance, if the fee is 150 dollars while the bonus you get is also 150 dollars, then applying isn’t even worth it.
But then if the fee is 150 dollars and the bonus is about 500 dollars travel points, we shouldn’t be the ones to tell you to consider it.
2. You Are Offered Substantial Ongoing Travel Benefits
When your travel patterns are in sync with the travel incentive of the card, then you may get substantial rewards. For instance, if you stay in a particular hotel when you travel, you can get a kredittkort that offers hotel loyalty programs in that hotel.
However, just like with one-time bonuses, the ongoing benefits should be more than what is being paid as the card’s yearly fee.
3. Everyday Spending Rewards Are Substantial
Getting cards that offer 1 percent cashback on every purchase is easy. Even getting cards that offer more than 1 percent on special categories like groceries is also easy.
What isn’t so easy though is getting a card with a high cashback percent offer every month on your necessary purchases. When you find a card like this, you most likely will need to pay annual fees to get the benefits.
However, before you take the offer, you need to consider two important things. First, you need to be sure that the benefits are more than what you’ll be paying for the card’s annual fee.
Secondly, you need to consider your daily spending habits. If you do not do enough household or groceries shopping, you most likely won’t earn enough points to match up the annual fees. But if you shop frequently for your home, then you should accumulate enough points to cover up and then exceed what you spend on the extra charge.
4. You Can Only Get a Credit Card with an Annual Fee
People whose credit is poor or those trying to repair their credit score are usually limited on the type of credit cards they can get. If you are in this category, you would have realized that the only credit cards you can get are ones with annual fees.
In cases like this, the money spent on the extra charge will be well spent, because you don’t have a choice and you can also build your poor credit with it.
Good credit doesn’t just make you qualified for certain loans, but it could also help you to save up on loans. When you have a poor credit score, the type of loans you typically will get approval for would have very high-interest rates. But with a good score, you can get a loan that has a lower interest rate thereby saving on the loan.
If you are paying an annual fee because you are in this situation, then it would be because you are building your credit score. As soon as you’ve gotten a higher score, you can stop using the card and then replace it with another one that doesn’t have a fee.
Conclusion
Paying a card’s annual fee may be beneficial in some cases just as we have seen in this article. However, if you are in the habit of not paying your credit fully or paying late, then you may not enjoy any of these benefits. This is because interest, fees, and penalties would possibly overshadow the benefits that the annual fee would have offered you. Simply put, if you aren’t responsible when it comes to credit, do not expect to get any benefit from the deal.
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