These Credit Cards Have a $95 Annual Fee, but Here's Why It's Worth Considering
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These credit cards have an annual fee, but if you have great credit, we will explain why they might be worth it for you.
Many people are quick to dismiss credit cards with an annual fee. After all, why would you pay to use something you're meant to spend on?
However, if you're regularly spending $1000 a month on your credit card, here's why you should consider it:
Credit cards with annual fees typically offer much better rewards than their no annual fee counterparts. Whether it's big sign-up bonuses, better rewards, or more flexibility, the rewards you receive could far outweigh the annual fee.
We find that cards with a $95 annual fee fit in that sweet spot of good rewards and perks while still being affordable.
You Wouldn't Believe Its Rewards
Do you like to travel? Travel credit cards can help you earn flights and hotel stays.
Our favorite is the Chase Sapphire Preferred. It offers a huge bonus as well as premium travel benefits.
Chase Sapphire Preferred lets you earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $625 toward travel when you redeem through Chase Ultimate Rewards®. You can earn 5,000 bonus points if you add your first authorized user and make a purchase within the first three months from account opening. This card lets you earn 2X points on travel and dining at restaurants & 1 point per dollar spent on all other purchases worldwide. The points can be transferred 1:1 to leading frequent travel programs including airline transfer partners. The card has a $0 foreign transaction fee. The card also comes with premium travel and purchase protection benefits (including trip cancellation/trip interruption insurance and auto rental collision damage waiver). There is an Introductory Annual Fee of $0 the first year, then $95.
Just imagine what you would do with an extra $625 in your pocket.
You could turn it into a flight to Vegas or a weekend hotel stay in New York.
While $4,000 might sound like a lot to spend in 3 months, keep in mind that the average household spends over $10,000 a year on food, apparel and entertainment alone. Check your credit card statements to see how much you usually spend.
Chase Sapphire Preferred's airline transfer partners include Southwest Airlines, United Airlines, British Airways (oneworld), Air France (SkyTeam), Korean Air (SkyTeam), Singapore Airlines (Star Alliance), and Virgin Atlantic.
Chase Sapphire Preferred also has hotel transfer partners if you'd rather convert your points to free hotel stays. Hotel transfer partners include Marriott, Hyatt, IHG, and The Ritz-Carlton.
One thing to know about this card, though, is that it's only for people with excellent credit.
To learn more about the Chase Sapphire Preferred, click here to visit Chase's secure website.
Remember, banks change their promotional offers all the time, so if you have great credit, now is the time to apply.
Grocery and Gas
Do you spend over $334 per month? Do groceries, gas and department store shopping take up most of your budget? If so, Blue Cash Preferred from American Express, a CreditDonkey partner, has an interesting rewards structure that might interest you.
Blue Cash Preferred has a limited time offer: apply by 5/3/17 and earn 10% cash back on purchases at U.S. restaurants in the first 6 months, up to $200 back. Plus, earn $150 back after you spend $1,000 on purchases within the first three months of opening your new credit card account. This card earns 6% at U.S. supermarkets (on up to $6,000/year in purchases, then 1%), 3% at U.S. gas stations, and 1% on other purchases. The cash back is earned in the form of Reward Dollars that can be redeemed as a statement credit. Enjoy a 0% intro APR on purchases and balance transfers for 12 months, then a variable rate, currently 13.74% to 23.74%. There is a $95 annual fee. Terms apply.
Rewards Almost Impossible to Resist
Do you spend over $1,000 per month?
If so, check out the Starwood Preferred Guest Credit Card from American Express, a CreditDonkey partner, which lets you earn Starpoints.
If you like to travel, Starpoints are hard to resist. Here's why:
- You can redeem Starpoints for hotel stays at Starwood hotels such as Sheraton, Westin, St. Regis, W Hotels, Meridian, Element, Loft, and Four Points.
- You can also transfer Starpoints to airline partners such as Alaska Airlines, American Airlines, Delta, and Hawaiian Airlines.
Starwood Preferred Guest offers 25,000 bonus Starpoints® if you spend $3,000 on purchases within the first three months of opening your new card account. You earn 2 Starpoints® for each dollar of eligible purchases spent on the Card at participating SPG® & Marriott Rewards® hotels. You earn 1 Starpoint for all other purchases. You can redeem points at over 1,300 participating hotels and resorts in over 100 countries with no blackout dates. There are no foreign transaction fees. There is a $95 annual fee ($0 introductory annual fee for the first year). Terms apply.
Plus, when you redeem Starpoints for 5 consecutive nights, you get the 5th night free (excluding Category 1 and 2 hotels). Or you can transfer Starpoints to an airline partner and get 5,000 bonus Starpoints for every 20,000 Starpoints you transfer at one time.
Fly Delta? Here's Why It's Special
Do you spend over $334 per month?
Do you want to check your first bag for free on every Delta flight? Do you want priority boarding? Of course you do.
Gold Delta SkyMiles offers 30,000 bonus miles if you spend $1,000 on purchases within the first three months of opening your new account. In addition, you can earn a $50 statement credit after you make a Delta purchase with your new card within the first three months. This card earns airline miles: 2 miles per dollar spent on purchases made directly with Delta and 1 mile for every dollar spent on all other eligible purchases. There is a $95 annual fee ($0 introductory annual fee for the first year).
If you fly Delta, here's what you should know: you can check your first bag free on every Delta flight with this card - that is a savings of up to $200 per round trip for a family of 4. Plus, you can enjoy Priority Boarding. Terms and conditions apply.
Credit cards with annual fees are not right for everybody. But for some, they work brilliantly.
- If you don't have great credit, focus on improving your credit management skills with credit cards for people with fair credit or no credit. Avoid prepaid debit cards as those do not help you build credit history.
- If you don't pay off your balance in full each month, focus on cards with low interest rates instead of rewards cards.
- If you don't spend over $334 per month, focus on a credit card with no annual fee instead.
Terms and limitations apply.
Charles Tran is the founder of CreditDonkey, a credit card comparison and financial education website. Write to Charles Tran at email@example.com. Our data-driven analysis has been recognized by major news outlets across the country and has helped consumers make savvy financial and lifestyle decisions.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. This site may be compensated through the Advertiser's affiliate programs.