Annual Fee? No Problem!

While a lot of credit card promos offer to waive their first year's annual fee, there are some that don't, and they want you to cough up $69-99 on your very first statement.

Don't let that dissuade you.



Think about it this way. Let's say you go ahead and pay $99 for the annual fee and are able to meet the requirements and earn the bonus reward points. Well my friend, that $99 you paid got you a free round-trip flight across the country or four free nights at a decent hotel.

You'll be hard pressed to find any sort of deal like that.

However, do keep in mind that if you pay for an annual fee, you should be getting some perks back. Card benefits that are always good that have include:

• 0% foreign transaction fees
• Purchase category bonus (e.g.: 2x award points on gas)
• Car rental damage insurance 
• Purchase protection

It's important to look at your portfolio and decide which cards are worth keeping for another year. And it never hurts to call customer service as your anniversary approaches and ask them to waive the upcoming year's annual fee. Depending on the card program, the retention officer might even offer you bonus benefits like extra points or other perks. No guarantee, but worth a try!

David's experience with annual fees

When I first introduced an American Airlines (AA) card, which offered 75k points (enough for a round-trip international flight) to TravelingGoober, he had the exact same reservation in regards to the annual fee. It took much longer than necessary to explain to him that the $99 annual fee was a small price to pay for a round-trip international flight. Even if he didn't plan a trip for the next few years, $297 ($99 x 3 years) is a STEAL for an international flight.


I guess what the point of this post really is all about... is don't be like Goober.