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Why Paying An Annual Fee For Your Credit Card Is A Good Idea

[November 29th, 2016]

If there’s one thing that’s almost a universal truth among credit card customers, it’s that they hate paying fees. That’s why so many credit cards advertise their no-annual-fee credit cards, hoping to entice folks who are reluctant to pay anything more than they absolutely have to.

But in fact, if you are against paying an annual fee under any circumstances, you could really be missing out. Credit cards that charge annual fees are almost always worth the money. Here’s why: they offer benefits and perks that are worth far more than the measly fee you pay per year for membership.

Here are a few of them:

• Signup bonuses. This is perhaps the biggest perk of a credit card with an annual fee. The signup bonuses are often worth more than the annual fee itself, and can amount to hundreds of dollars in gift cards, round-trip airline tickets, or a weekend in a luxury hotel suite.

• More ways to earn rewards. The higher the annual fee, the more rewards you can earn. Triple points on purchases are not unheard of, and it’s generally much easier to redeem and transfer rewards to get things you really want and can use, like airline miles.

• 24/7 concierge service. You can get help with trip planning, shopping, merchant disputes, or pretty much anything you can think of with this swanky service, available to elite customers at any hour of the day or night. Just call them up with your request, and you’ll be put through to a dedicated concierge line and a specialist who can answer your questions.

• Purchase protection. If you buy something and it’s lost or stolen, or it breaks, or it just doesn’t work, you can have recourse under the terms of your credit card agreement. They will advocate for you and make sure your complaint or problem is handled appropriately.

• Trip insurance. If you plan a trip and something goes amiss, you may be covered if you have travel insurance through your credit card. This gives you peace of mind, particularly if you’re a frequent traveler.

Annual fees may be as low as $35 or as high as $450, but don’t rule out a card just because it has a fee. First, find out what you’ll get. It just may be more than you bargained for.