Is it worth going for annual fee credit cards? - Other Questions

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Questions » User Questions » Other » Is it worth going for annual fee credit cards?

Is it worth going for annual fee credit cards?

Answered on

Lately, banks have been offering a lot of freebies to consumers of all sorts. There was a time when long time consumers used to get a good deal in order to reward them for their loyalty and business. But now, in order to lure new consumers with a better buying power than their older peers, the banks have started offering attractive offers to all with sufficient income and savings.

One of the most popular concessions offered by banks is the no annual fee credit card. This has become so popular that it is no longer thought of as a concession but a given. And one can make substantial savings with no annual fee cards given that if you do not use the card, you do not pay. But there are some situations where you might want an annual fee to be included. We will now look at the reason why you would want to do this.

If you go for a no annual fee card, you might be agreeing for a higher rate of interest on the money borrowed. This is okay if you are using your credit card as a convenience and not as a necessity. If you are going to be using it to make essential purchases with no cash to pay back the borrowed amount within the given grace period, you will end up paying interest on the amount borrowed. Now this interest is not like a bank loan interest, the rates will be much higher than a conventional bank loan. And paying interest on credit card loans will only gradually make you end up in debt. but if you are going to pay all your dues on time every time, you need not worry about a no annual fee and higher interest rate credit card.

There are many additional perks that you will get with no annual fee credit cards. Getting a no annual fee credit card is a given these days. You need to ask for more and get it if you want to strike a good bargain with the bank. Earning sky miles is one of the latest additions to the repertoire of offers that banks give out. If you fly a lot, you can take advantage of this offer. But again a few banks will charge you a small fee annually in order to enroll you into the frequent flyer or fly miles program. Some banks will also provide points for every time that you swipe your card or you might get points as a percentage of the amount that you spend using your card.

In any case, you can use these points to buy articles at certain stores or you can also use it to redeem for cash. But if you redeem the points for cash, you will not get a better deal as you would get an article of higher value of you exchange the points at a client store. Some other cards will also offer you travel programs or vacation packages on reaching a certain stage with your card usage. Car rentals, hotel bookings, and birthday packages are other freebies that are offered by credit card companies.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit

Other Questions in
Other