Don’t Fear the Annual Fees

All information about The Amex EveryDay® Card, Amex EveryDay® Preferred Credit Card and the Hilton Honors American Express Aspire Card has been collected independently by 10xTravel.

We get it — fees suck. And all the more so when they’re recurring.

However, when it comes to credit cards with an annual fee, it’s important to see beyond the initial cost of holding the card.

While none of us want to fork out money we don’t need to, annual fee credit cards can offer value far exceeding the cost of holding them. This holistic valuation of a credit card is key to selecting the right card.

Here’s the full low-down on annual fee credit cards, when they’re worth it and why you shouldn’t fear annual fees.

Why Do Credit Card Annual Fees Exist?

Credit card annual fees serve two purposes.

The first reason is so card issuers can mitigate risk.

Every time you pay with your credit card, you’re essentially borrowing money from your card issuer or bank. That means they need to assess the risk you pose as a borrower — put simply, the likelihood of you defaulting on a payment.

There are even cards that are designed to help people with poor scores build their credit. These cards come with annual fees that help mitigate risk for the issuer.

The second reason why card issuers charge annual fees is in return for premium perks and stronger earning rates. Typically, the higher the annual fee, the more perks you can expect to receive on the card.

Is It Worth Paying an Annual Fee?

So, when should you go for an annual fee card?

Generally speaking, whenever your return in earning rates, bonuses and perks are greater than the cost of the annual fee, you should always go for the annual fee-incurring card.

While that might sound like heresy for the annual fee-averse cardholder, it’s just a case of simple math.

If what you earn in return is greater than what you pay, it’s a win. And with premium travel rewards credit cards, it’s often a big win.

The Benefits of Annual Fee Credit Cards

You can expect to receive many great benefits from holding an annual fee credit card.

Better Point Redemption Options

Not all reward currencies are created equal and even the same reward currency can carry different redemption potential depending on the card you hold.

Take the Chase Freedom Unlimited® and Chase Freedom Flex® cards as examples. Both of these $0 annual fee cards earn Ultimate Rewards points, but your redemption options are limited to cashback rewards only, meaning you can forget about partner transfers and award bookings.

However, your redemption options change if you also hold either the Chase Sapphire Reserve® or Chase Sapphire Preferred® Card. The Sapphire Preferred charges an annual fee of just $95 per year while the Sapphire Reserve charges $550 per year. You can transfer your Ultimate Rewards points earned on the Freedom Unlimited or Flex to your Sapphire account, to then transfer them to one of Chase’s 14 airline or hotel transfer partners at 1:1 ratios.

So by opting to pay just $95 per year for the Sapphire Preferred card, you’ll widen your options for lucrative partner redemptions significantly. That extra $95 per year unlocks access to award bookings with all three major airline alliances as well as three large hotel portfolios.

There are even differences in point-redemption options between cards with different levels of annual fees. Let’s use the Chase Sapphire Reserve and Chase Sapphire Preferred Card as examples again. Both cards charge annual fees and earn Chase Ultimate Rewards points which can be transferred to any of Chase’s airline and hotel transfer partners.

However, when it comes to redeeming Ultimate Rewards points for travel through the Chase Travel℠, Sapphire Preferred members will get a fixed redemption value of 1.25 cents per point while Sapphire Reserve members will get 1.5 cents per point. This may not be a redemption option for every traveler, but booking through the portal can help when cash prices or award availability are low.

The Capital One Savor Cash Rewards Credit Card is another example of the often limited redemption options available on $0 annual fee cards. While it’s certainly a strong contender for earning cash back on a range of bonus category purchases, you won’t be able to redeem your earnings toward travel transfer partners. That’s unless you also hold one of the following cards:

• Capital One Venture X Rewards Credit Card
• Capital One Venture X Business
• Capital One Venture Rewards Credit Card
• Capital One VentureOne Rewards Credit Card
• Capital One Spark Miles for Business

If you were to hold the Capital One Venture Rewards Credit Card for an annual fee of just $95, for example, this killer Capital One card combo would enable you to use your earnings on the Savor Cash Rewards card for lucrative transfers to one of Capital One’s 15+ airline and hotel partners. This cash back to miles transfer is also available on other $0 annual fee Capital One cards, not just the Savor.

This handful of examples demonstrates how paying an annual fee — often just $95 — can unlock an extensive range of redemption opportunities, increasing the value of your reward currency significantly.

Higher Welcome Offers

Generally speaking, the higher the annual fee the higher the welcome offer.

For instance, the $0 annual fee Chase Freedom Flex card might have a typical welcome offer of a couple hundred dollars after spending a few hundred dollars within the first three months of card membership (but welcome offers vary.

In contrast, the $95 annual fee Chase Sapphire Preferred Card has had welcome offers as high as 100,000 points after spending a few thousands within the first three months of card membership.

Sure, the minimum spending threshold is higher — eight times as high in fact. But is spending several thousands with your card over three months unreasonable?

Of course, the answer to this depends highly on your personal situation and spending habits. But think about it this way. According to the Consumer Expenditures Survey in 2021, the average American household has a monthly expenditure of $5,577. Approximately $1,855 of this monthly expenditure accounts for housing costs, leaving $3,722 to cover all other purchases.

While not all housing-related costs can be charged to a credit card, most other general purchases can be. So if you charged $3,722 per month to your card, you’d already have hit the minimum spending threshold for the Sapphire Preferred Card after about two months.

The key point here is that you’re earning the welcome bonus through spending that would have occurred anyway — instead of overspending to try and achieve it.

You could redeem those 100,000 points for a fixed value of $1,250 through Chase Travel. Alternatively, you could transfer them to a travel partner for at least 2 cents per point, making your points worth at least $2,000.

If you would manage to pull this off, you would effectively offset the $95 annual fee by $1,905 in the first year. This higher welcome bonus alone could even justify the cost of holding the card for subsequent years.

If your spending habits are at least equal to or higher than those of the average American household, that means any welcome offer with a minimum spend of $11,166 or less in the first three months of card membership should be reasonable to achieve ($3,722 x 3).

So don’t be scared off next time you see a welcome offer with a few zeros tacked onto the minimum spend — nine out of 10 times, you’ll hit it without having to change your spending habits.

Luxury Cardholder Perks

Don’t be mistaken — there are $0 annual fee cards that offer a robust set of earning rates and additional cardholder perks.

The Wells Fargo Autograph^SM Card is a great example of such.

But there’s no way that these kinds of cards can compete with the perks offered by premium travel rewards credit cards. In fact, these luxury, over-the-top perks are one of the main reasons many of us got into the points and miles game in the first place.

The Platinum Card® from American Express, for example, offers over $1,500 worth of statement credit perks alone, more than double its annual fee of $695 (see rates & fees). Not to mention that it also comes with complimentary access to The American Express Global Lounge Collection, giving you access to more than 1,400 airport lounges worldwide.

Of course, the annual fee on such cards is far from negligible, but for the frequent traveler who can make use of these perks, the annual fee is a drop in the ocean compared to the return value.

Whether it’s lounge access, statement credits, free night rewards or companion certificates, you can easily justify the cost of an annual fee card, as long as you can use its benefits.

Lucrative Bonus Spending Categories

By going for an annual fee-incurring card over a $0 annual fee card, you can expect to receive better point multipliers on bonus category spending.

Let’s look at the Amex EveryDay® Card vs. the American Express® Gold Card for example.

The Amex EveryDay Card earns:

• 2X points on groceries at U.S. supermarkets on up to $6,000 in purchases per calendar year (1X points thereafter)
• 1X points on all other purchases

In contrast, for an annual fee of $325 (see rates & fees), the American Express Gold Card earns:

• 4X points at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1x
• 4X points at U.S. supermarkets, on up to $25,000 in purchases per calendar year (1X points thereafter)
• 1X points on all other purchases

To put this into perspective, the average American household spends $8,289 on food per year — $5,259 on groceries and $3,030 on food away from home. If that expenditure was charged to the Amex Gold card, you would earn 33,156 points compared to just 14,289 points with the Amex EveryDay Card.

If you transferred these points to one of Amex’s airline or hotel partners for 2 cents a piece, you’d receive a redemption value of $663.12 with the Gold card’s earnings compared to just $285.78 with the EveryDay Card’s earnings. Even if you adjusted the calculation for the annual fee, you’d still receive a redemption value of $413.12 with the Gold card’s earnings.

These lucrative bonus spending categories give you a greater return on your spending, making it easier to offset the annual fee and making the likelihood of more frequent award bookings and redemptions greater.

Annual Fee vs. No Annual Fee Cards

Here are some helpful comparisons between annual fee vs. $0 annual fee credit cards.

Airline Credit Cards

If you fly at least semi-frequently with the same airline, applying for one of their co-branded credit cards is a great option for earning bonus points and receiving additional perks when flying.

American Airlines, Delta Air Lines, Southwest Airlines and United Airlines are some of the major U.S. carriers offering co-branded cards. Southwest doesn’t offer any $0 annual fee cards while American Airlines offers one $0 annual fee card through a product change only.

However, Delta and United offer both $0 annual fee and annual fee-incurring cards.

Let’s take United’s cards as an example.

The New United Gateway℠ Card offers the following perks and earning rates, for a $0 annual fee:

• 2x miles on United® purchases
• 2x miles at gas stations, on local transit and commuting
• 1X miles on all other purchases
• 25% discount, given as a statement credit, for in-flight purchases of food, beverages and Wi-Fi on board United-operated flights and on Club premium drinks
• No foreign transaction fee
• Rental car insurance
• Trip cancellation and interruption insurance up to $1,500 per person and $6,000 per trip for your pre-paid, non-refundable passenger fares, for covered reasons.

These perks are nothing to sneeze at, especially considering that holding the card comes with no extra fees.

But what are the benefits you could gain by opting for the next cheapest United card, The New United℠ Explorer Card?

For a $150 annual fee, which is waived in the first year of card membership, the Explorer Card offers:

• 2x miles on United® purchases, dining, and hotel stays when booked with the hotel
• 1X miles on all other purchases
• First checked bag flies free for you and up to one companion
• A statement credit for a Global Entry, Nexus or TSA PreCheck® application fee, every four years, when charged to your card through an eligible enrollment provider.
• Priority boarding for you and all other travelers on your reservation on United-operated flights
• 25% discount, given as a statement credit, for in-flight purchases of food, beverages and Wi-Fi on board United-operated flights and on Club premium drinks
• No foreign transaction fees
• Two annual United Club one-time entry passes
• If the primary cardmember has MileagePlus Premier status and is traveling on an award ticket, they’re eligible for complimentary upgrades on select United- and United Express-operated flights, subject to availability (up to one companion that is traveling on the same reservation can also qualify for an upgrade).
• 25 Premier Qualifying Points (PQP) for every $500 spent in purchases (including purchases made by authorized users) up to a maximum of 1,000 PQP in a calendar year.
• Rental car insurance
• Trip cancellation and interruption insurance up to $1,500 per person and $6,000 per trip for your pre-paid, non-refundable passenger fares, for covered reasons.
• Baggage delay insurance reimbursement of up to $100 a day for three days for essential item purchases, when common carrier delays exceed six hours
• Lost luggage reimbursement of up to $3,000 per passenger
• Trip delay reimbursement of up to $500 per ticket for you and your family when common carrier delays exceed 12 hours or require an overnight stay

Is the Explorer Card worth the higher annual fee in this case?

If you’re considering the value of a United credit card in the first place, the answer is likely yes.

The Explorer Card offers two one-time-use United Club passes. The equivalent cost of two one-day United Club passes is $118 ($59 per visit). That means if you can use this perk every year, you can offset the annual fee by $23.

Similarly, the Explorer Card offers a free checked bag for you and up to one companion. That can save you up to $140 per round-trip, meaning you could offset the annual fee in a single annual round-trip.

For the semi-frequent United flyer, neither of these perks should be much of a challenge to use. That’s also not to mention the statement credit for a Global Entry, Nexus or TSA PreCheck application fee, every four years, which effectively cuts $25 off the annual fee every year if used.

Considering a United card will take up space in your Chase 5/24 count, opting for the higher value proposition here will be your best bet.

United also has a mid-tier annual fee card, The New the United Quest^SM Card, for $350 per year. But how would the cost-benefit calculation change for United’s premium co-branded card, the United Club^SM Card?

For an annual fee of $695, the card offers:

• 4X miles on purchases with United
• 2X miles on all other travel purchases
• 2X miles on dining including eligible delivery services
• 1X miles on all other purchases
• Complimentary United Club membership
• Free first and second checked bags for you and up to one companion
• 25% discount, given as a statement credit, for in-flight purchases of food, beverages and Wi-Fi on board United-operated flights and on Club premium drinks
• A statement credit for a Global Entry, Nexus or TSA PreCheck application fee, every four years, when charged to your card through an eligible enrollment provider.
• If the primary cardmember has MileagePlus Premier status and is traveling on an award ticket, they’re eligible for complimentary upgrades on select United- and United Express-operated flights, subject to availability (up to one companion that is traveling on the same reservation can also qualify for an upgrade).
• No foreign transaction fees
• Premier Access® travel services including preferential priority check-in, security screening, boarding and baggage handling privileges (subject to availability)
• Complimentary Avis President’s Club® membership
• Complimentary IHG® One Rewards Platinum Elite status
• 10% discount for United Economy award flights on United or United Express, within the United States and Canada
• Rental car insurance
• Trip cancellation and interruption insurance up to $10,000 per person and $20,000 per trip for your pre-paid, non-refundable passenger fares, for covered reasons.
• Baggage delay insurance reimbursement of up to $100 a day for three days for essential item purchases, when common carrier delays exceed six hours
• Lost luggage reimbursement of up to $3,000 per passenger
• Trip delay reimbursement of up to $500 per ticket for you and your family when common carrier delays exceed 12 hours or require an overnight stay

Complimentary United Club membership, worth $650, offsets the annual fee by $125 alone. If you can maximize this perk by using United Club lounges regularly, the card will pay for itself.

Similarly, the free first and second checked bag perk for you and up to one companion offers savings of $320 per round-trip. That means you’d need to fly two round trips per year to offset the annual fee. Of course, the more you travel with multiple checked bags per year, the more value you’ll receive from this perk.

The heightened insurance coverage limits also save you money compared to taking out separate insurance plans.

Overall, if you use these premium perks regularly, you can easily offset the annual fee by more than double. If not, you’ll want to stick to the Gateway or Quest card.

Hotel Credit Cards

If you regularly find yourself staying with a specific hotel chain, opening a co-branded hotel credit card could increase the luxury of your stay.

IHG, Marriott, World of Hyatt and Hilton all offer co-branded cards. While World of Hyatt has annual fee-incurring cards only, the rest offer a combination of annual fee-incurring cards in addition to $0 annual fee cards.

Let’s use Hilton co-branded cards as an example.

The Hilton Honors American Express Card (see rates & fees) has a $0 annual fee and offers the following:

• 7X points on direct purchases with hotels and resorts in the Hilton portfolio
• 5X points on dining purchases at U.S. restaurants including takeout and delivery
• 5X points on groceries at U.S. supermarkets
• 5X points on gas at U.S. gas stations
• 3X points on all other purchases
• Complimentary Hilton Honors Silver Status
• No foreign transaction fees
• Car rental loss and damage insurance¹

These are some generous offerings for a $0 annual fee card, particularly with the inclusion of complimentary Hilton Honors Silver Status and car rental loss and damage insurance.

But would it be worth paying $150 per year (see rates & fees) to hold the Hilton Honors American Express Surpass® Card instead?

As a Surpass cardholder, you’ll enjoy the following perks:

• 12X points on direct purchases with hotels and resorts in the Hilton portfolio
• 6X points on dining purchases at U.S. restaurants including takeout and delivery
• 6X points on groceries at U.S. supermarkets
• 6X points on gas at U.S. gas stations
• 4X points on U.S. online retail purchases
• 3X points on all other purchases
• Complimentary Hilton Honors Gold Status
• Spend $40,000 in a calendar year using your card and receive complimentary Hilton Honors Diamond Status through the end of the next calendar year.
• Free night reward when you charge $15,000 to your card in purchases within a calendar year.
• $200 annual statement credit for eligible direct purchases with a property in the Hilton portfolio, given in quarterly $50 increments. Eligible purchases include direct bookings made with Hilton and incidentals charged to your room and paid using your card.
• Complimentary National Car Rental® Emerald Club Executive® status (enrollment required).
• No foreign transaction fees
• Car rental loss and damage insurance, up to $50,000 for theft and collision damage.

If you managed to spend $15,000, you’d receive a free night reward. Considering the average American household spends $3,722 per month on non-housing related expenses, that works out to $44,644 per year.

So not only could the average household expect to earn a free night reward but also complimentary Hilton Honors Diamond Status through the end of the next calendar year, after spending $40,000 within a year.

Of course, if your expenditure is lower than average, this might not apply to your situation. Likewise, it assumes that all your spending would be put on one card.

But even assuming that you weren’t able to hit either of the minimum spending requirements, you could still benefit from complimentary Hilton Honors Gold Status as well as use the $200 annual statement credit for eligible direct purchases with a property in the Hilton portfolio.

These perks alone would offset the Surpass card’s annual fee. If you’re considering the value of a Hilton card in the first place, you’ll likely be staying at Hilton properties often enough to reap the rewards of these perks.

So what about Hilton’s premium credit card, the Hilton Honors American Express Aspire Card?

For a not-so-small annual fee of $550, you’ll receive:

• 14X points on direct purchases with hotels and resorts in the Hilton portfolio
• 7X points on flights booked directly with airlines or AmexTravel.com and car rentals booked directly with select car rental companies
• 7X points on dining purchases at U.S. restaurants including takeout and delivery
• 3X points on all other purchases
• Complimentary Hilton Honors Diamond Status
• $400 annual statement credit for eligible direct purchases with participating resorts in the Hilton portfolio, given in biannual $200 increments. Eligible purchases include direct bookings made with Hilton and incidentals charged to your room and paid using your card.
• Annual free night reward. Receive a second free night reward after charging $30,000 to your card within a calendar year and an additional third free night reward after charging $60,000 to your card within a calendar year.
• $189 annual CLEAR Plus membership statement credit
• $200 annual statement credit for eligible airfare purchases made directly with an airline or through amextravel.com, given in quarterly $50 increments.
• Complimentary National Car Rental® Emerald Club Executive® status (enrollment required).
• Receive $1 in credits per dollar spent, up to $100 per property, when you use your card to book through HiltonHonorsAspireCard.com or by calling Hilton Honors at (855) 292-5757, for a minimum stay of two nights at Waldorf Astoria® Hotels & Resorts and Conrad® Hotels & Resorts.
• No foreign transaction fees
• Car rental loss and damage insurance, up to $75,000 for theft and collision damage.
• Baggage insurance plan with coverage of up to $2,000 for checked bags and a combined maximum of $3,000 for checked and carry-on baggage. For New York State residents, the limit is $2,000 per bag/suitcase for each covered person with a $10,000 aggregate maximum for all covered persons per covered trip.

The statement credit perks on this card alone will more than offset the annual fee. They have a cumulative value of $789, putting you ahead of the annual fee by $239 every year.  Let’s not forget the value that comes from other perks, such as the free night rewards, complimentary Hilton Honors Diamond Status and complimentary National Car Rental® Emerald Club Executive® status.

So as long as you can get a greater return than the annual fee, you should consider applying for the card.

Travel Rewards Credit Cards

Last but not least, let’s take a look at the travel rewards credit cards.

These cards have the most valuable and flexible reward currencies and are issued by big names including American Express, Chase, Capital One and Citi.

Talk of premium travel rewards credit cards wouldn’t be complete without mentioning heavyweights such as The Platinum Card from American Express, the Chase Sapphire Reserve and the Capital One Venture X Rewards Credit Card.

The Amex Platinum offers more than $1,500 worth of statement credits, enabling you to offset the annual fee of $695 by more than double.

The Chase Sapphire Reserve’s annual fee of $550 can be offset through more than $1,000 worth of statement credits and partner perks, as well as fixed portal redemption rates of 1.5 cents per point.

And the Venture X Rewards card’s complimentary Priority Pass Select^TM membership, access to Capital One and Plaza Premium Group lounges, as well as its $300 annual travel credit for Capital One Travel bookings makes offsetting its $395 annual fee a breeze.

If you already live the jet-setter lifestyle or are ready to make it a reality, all three of these cards can help you get there while effectively paying for themselves.

That said, if you want to balance perks with lower annual fees, there are many other cards to consider applying for with annual fees ranging anywhere between $95 and $400.

As you’ve seen, it typically doesn’t take much expenditure to offset low-tier annual fees. Likewise, if you’re a frequent traveler, a premium travel rewards credit card will quickly pay for itself.

When to Avoid Paying an Annual Fee

Annual fee cards can offer a range of perks and earning rates you can only dream of. However, there are some instances where holding an annual fee card doesn’t make sense.

Let’s run through them.

You’re Not Ready to Commit

The world of points and miles can be extremely lucrative, unlocking luxury travel experiences for just a fraction of the price. But if you’re not ready to commit some time to understanding credit card strategies, an annual fee card might not be right for you.

To ensure you’re offsetting a card’s annual fee, you need to stay on top of your expenditure, to work out what return you’re getting.

Similarly, you need to always ensure you pay your balance before its due date to avoid late penalty fees.

This requires discipline and some extra effort to ensure you’re maximizing the value of your card, year after year.

If none of this fits with your habits or lifestyle, then a $0 annual fee credit card will be a much better fit. That way, you won’t need to worry about offsetting an annual fee (though you’ll still need to pay your balance before its due date).

You’re a Frugal Spender

One of the principles of responsible credit card usage is never overspending with your card.

Instead, you want to leverage your natural expenditure to earn you a return in the form of points, miles and bonuses.

That said, depending on the card’s annual fee, bonus spending categories and welcome offer, a certain level of monthly expenditure is necessary for a credit card to pay off.

If you have a lower-than-average monthly expenditure, you might not be able to reap the full benefits of an annual fee card.

For instance, among other perks and rates, the $0 annual fee Blue Cash Everyday® Card from American Express (see rates & fees) earns 3% cash back on gas at U.S. gas stations on up to $6,000 spent per year (then 1% thereafter). In contrast, the Blue Cash Preferred® Card from American Express comes with a $95 annual fee (see rates & fees), which is waived in the first year, and also earns 3% cash back on gas at U.S. gas stations.

With the Preferred card, you’d need to spend at least $3,167 on gas per year to break even on the annual fee. Alternatively, that same $3,167 spent on gas using the Everyday Card could net you $95 in cash back.

If you aren’t commuting to work every day, you might be better off going for the $0 annual fee card. In fact, it would take $6,334 in spending on gas to get $95 worth of cash back on the Preferred card — double that required for the Everyday Card, the equivalent spending of which would earn you $190 in cash back.

For this reason, you need to consider your typical monthly expenditure before applying for a credit card. In some cases, you may be better off going for the $0 annual fee version, even if the point multipliers are higher on the annual fee version.

Similarly, $0 annual fee cards typically have lower spending requirements for earning their welcome offers. Given how crucial welcome offers are in your wider points and miles strategy, failing to earn them isn’t an option. Therefore, lower spenders may be better off with a $0 annual fee card to ensure they earn the welcome bonus without needlessly overspending.

The Perks Don’t Match Your Spending Habits

The idea of sipping complimentary drinks in the airport lounge, before using your annual companion certificate perk, after having sped through security with the help of a complimentary TSA PreCheck membership, does sound like a traveler’s dream.

But such glamorous visions can often get in the way of good judgment.

These types of perks are valuable only when you’ll use them regularly. Through regular usage, you’ll maximize their value, giving you the greatest return on your annual fee.

No matter how attractive perks may be, they’re of no use to you if you don’t use them frequently.

Likewise, you need to select a card with bonus spending categories that reward your current spending habits.

Lucrative point multipliers on streaming purchases and online grocery shopping are no good for the non-streamer who shops at brick-and-mortar stores exclusively. Aside from the initial welcome offer and ongoing perks, bonus spending categories play a key role in allowing you to offset the annual fee through regular rewards on spending.

If the perks and bonus spending categories don’t match your spending habits and travel goals, paying for an annual fee card will end up costing you more than you get in return.

You’ve Outgrown the Card

Whether you’ve changed your spending habits, shifted your travel goals or have cut down on certain purchases, a specific credit card may no longer make sense to pay for.

If you can’t offset its annual fee as a result, it will end up costing you money to hold.

If that’s the situation you find yourself in, you’ll want to first get in contact with your card issuer. You can ask if they can waive or reduce the annual fee. If that doesn’t work, you can request a product change to a $0 annual fee card.

While you may be tempted to cancel the card, you’ll be better off avoiding this option. Canceling a card will reduce the overall age of your accounts, which can affect your credit score. A closed card account will stay on your credit report for up to 10 years if it was in good standing while it was open. This means that the hit to your credit score will occur after you close the card.

Nevertheless, if you can avoid a hit to your score, you’re better off pursuing this option.

Look Beyond the Annual Fee: Luxury Perks and Lucrative Redemptions

It’s easy to be put off by a card because of a high annual fee. But more often than not, it’s even easier to offset the annual fee without having to change your spending habits.

As long as you select a card that matches your travel goals and spending habits, and you have a certain minimum amount of monthly expenditure, offsetting the annual fee on a card shouldn’t be a challenge. And the perks you’ll receive in return can make it more than worth the initial cost.

So if you’re considering your next card or trying to decide on your first one, don’t let an annual fee ruin it for you. Instead, try to see the holistic value of the card and work out the degree to which you can offset its annual fee.

Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.