Choosing the best credit card for your lifestyle can be difficult, especially when determining whether the annual fee is worth the cost or whether you should pick a no annual fee card that may offer fewer perks.
Credit card annual fees can run from $95 per year to over $500 for premium cards with luxury perks and memberships. Deciding which is the most suitable credit card with the best rewards for your lifestyle takes some research and assessment.
Some perks and benefits which may make an option the best travel credit card for one person may not fit the travel patterns and lifestyle of another.
Below we will guide you through everything you need to know before deciding whether you have selected the Best Travel Credit Card Annual Fee for you. Below you will find the answers to the following:
- What is a Credit Card Annual Fee?
- What Rewards Can You Expect with a No Annual Fee Credit Card?
- How to Work Out What Credit Card Benefits and Perks are Worth to You.
- How Relevant is the Benefit to Your Life?
- How to Find the Best Travel Credit Card Annual Fee for You.
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What is a Credit Card Annual Fee?
A Credit Card Annual Fee is the annual charge made by your bank or credit card company to use their credit card. The charge will be made yearly on your statement.
The credit card issuers will apply an annual fee to cover the costs of the benefits and features of the card. So, the more perks a credit card offers, the higher the annual fee.
You will need to decide whether the credit card's perks and benefits make the annual fee cost worth it.
What Type of Benefits Come with a Credit Card with Best Rewards?
- Earn points which you can spend on Travel Purchases
- Gain credit for Global Entry and other TSA Memberships
- Gain money off car rentals
- Discounts on hotel bookings
- Travel Insurance
- Free Checked Bags
- Cashback on travel purchases annually
What Rewards Can You Expect with a No Annual Fee Credit Card?
If you research no annual fee credit cards, you will see that the issuers usually offer a 2-5% cash back on your purchases made on the card. So, your first step will be to look at some no annual fee credit cards and see what cashback you would make monthly with your typical spending.
This can serve as your baseline for looking at cards with Annual Fees. If you make more cashback going with a credit card with an annual fee (after subtracting the yearly cost of the card), then your decision is pretty cut and dry!
How to work out what Credit Card Benefits and Perks are Worth it to You
Next, you should look at the perks and benefits offered with the annual fee credit cards you are considering and work out what they are worth to you.
Some annual credit card fees cover the costs of many perks and benefits that come with owning the card. For example, some of the best travel credit card annual fees will come with TSA precheck memberships, airport lounge access, free checked bags, and travel insurance.
You will need to determine the value of each perk and weigh it against the charged annual fee.
Note that this should not be the market value of the perk but also how applicable that benefit is to you. So you will not judge how much each perk sells for individually; instead, assess your lifestyle and ask - how valuable is this credit card perk to me?
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