{"id":912,"date":"2020-07-09T02:21:17","date_gmt":"2020-07-08T22:21:17","guid":{"rendered":"https:\/\/moneymall.ae\/credit-blog\/?p=912"},"modified":"2020-07-27T14:17:58","modified_gmt":"2020-07-27T10:17:58","slug":"is-paying-the-annual-fee-for-a-credit-card-worth-it","status":"publish","type":"post","link":"https:\/\/moneymall.ae\/credit-blog\/is-paying-the-annual-fee-for-a-credit-card-worth-it\/","title":{"rendered":"Is Paying The Annual Fee For A Credit Card Worth It?"},"content":{"rendered":"<p><span style=\"font-weight: 400\">It often doesn\u2019t make sense to pay an annual fee for a credit card. <strong>Plenty of credit cards<\/strong> are offered with no annual fee, and consumers often can&#8217;t justify paying an annual fee in terms of rewards or benefits that might be offered in exchange. Occasionally, however, a card offers benefits that truly justify the cost of an annual fee. Here are the circumstances in which the expense might be worth it, depending on the individual&#8217;s spending habits and travel patterns\u2026<\/span><\/p>\n<p style=\"text-align: center\"><em><strong>Read More:-\u00a0<a href=\"https:\/\/moneymall.ae\/credit-blog\/credit-card-scams-and-frauds\/\">Credit Card Scams And Frauds You Must Know About<\/a><\/strong><\/em><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a23442778a79\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a23442778a79\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/moneymall.ae\/credit-blog\/is-paying-the-annual-fee-for-a-credit-card-worth-it\/#What_is_an_annual_fee\" >What is an annual fee?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/moneymall.ae\/credit-blog\/is-paying-the-annual-fee-for-a-credit-card-worth-it\/#When_is_an_annual_fee_worth_it\" >When is an annual fee worth it?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/moneymall.ae\/credit-blog\/is-paying-the-annual-fee-for-a-credit-card-worth-it\/#You_are_earning_enough_rewards_to_offset_the_annual_fee\" >You are earning enough rewards to offset the annual fee<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/moneymall.ae\/credit-blog\/is-paying-the-annual-fee-for-a-credit-card-worth-it\/#You_are_using_your_cards_%E2%80%98extra_benefits_often\" >You are using your card\u2019s &#8216;extra benefits&#8217; often<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/moneymall.ae\/credit-blog\/is-paying-the-annual-fee-for-a-credit-card-worth-it\/#The_only_card_that_you_can_get_approved_for_has_an_annual_fee\" >The only card that you can get approved for has an annual fee<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"What_is_an_annual_fee\"><\/span><b>What is an annual fee?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">Annual fees are automatically charged once a year by the credit card provider to account for all the rewards and benefits of the card. Since many <strong>rewards cards are fee-free<\/strong>, it\u2019s easy to wonder why others charge a fee, to begin with. As a general rule, however, the rewards cards with the biggest perks and signup bonuses are the ones that charge an annual fee. And if you want the most bang for your buck, you\u2019ll be asked to pay for it. Very often credit cards with heavy benefits and perks come with a high annual fee in some cases up to <strong>AED 1500-2000<\/strong>.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"When_is_an_annual_fee_worth_it\"><\/span><b>When is an annual fee worth it?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400\">While there are no hard and fast rules that dictate when paying an annual fee is worth it, it\u2019s fairly easy to tell. For the most part, paying a card\u2019s annual fee is worth it if you are receiving more than you are paying. It\u2019s also worth noting that most of the top rewards credit cards waive the annual fee for the first year, which gives you time to see if the added cost is worth the benefits. Most of the time, paying an annual fee is worth it if:<\/span><\/p>\n<p style=\"text-align: center\"><em><strong>Read More:-\u00a0<a href=\"https:\/\/moneymall.ae\/credit-blog\/how-to-close-a-credit-card\/\">How to close a credit card in UAE the Right Way in 6 Steps<\/a><\/strong><\/em><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"You_are_earning_enough_rewards_to_offset_the_annual_fee\"><\/span><b>You are earning enough rewards to offset the annual fee<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><b><span style=\"font-weight: 400\">If you are spending enough on your card each month to rack up plenty of rewards, then paying an annual fee might make sense. For example, it is pretty easy to find a credit card that <strong>offers 1% cashback<\/strong> on all purchases, or that offers a higher cashback percentage in categories that change from month to month. What\u2019s not so easy to find is a credit card that offers a high <strong>percentage of cashback<\/strong>, month in and month out, on necessary purchases. To get a deal like this, you\u2019ll likely have to pay an annual fee, but depending on your household\u2019s spending habits, you could come out far ahead.<\/span><\/b><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"You_are_using_your_cards_%E2%80%98extra_benefits_often\"><\/span><b>You are using your card\u2019s &#8216;extra benefits&#8217; often<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>If you are somebody who needs to travel frequently due to work or hobby then you might consider paying an annual fee for a travel or air mile credit card. These cards offer useful services and benefits for frequent travelers like heavy discounts on hotel bookings and flight tickets, free access to airport lounges along with <strong>membership in airline loyalty programs<\/strong>. Thus, if your travel patterns align with the incentives offered by a particular credit card, rewards can be substantial.<\/p>\n<p style=\"text-align: center\"><em><strong>Read More:-\u00a0<a href=\"https:\/\/moneymall.ae\/credit-blog\/use-your-uae-credit-card-abroad\/\">Can You Use Your UAE Credit Card Abroad?<\/a><\/strong><\/em><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"The_only_card_that_you_can_get_approved_for_has_an_annual_fee\"><\/span><b>The only card that you can get approved for has an annual fee<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><b><span style=\"font-weight: 400\">If you have poor credit, are trying to rebuild your credit score, and the only card you can get approved for has an annual fee, the fee could be money well spent. A better credit score can mean the <strong>difference between being approved<\/strong> for a loan or not. It can also mean substantial savings on your loan because people with <strong>higher credit scores<\/strong> generally qualify for <strong>lower interest rates<\/strong>. The key is to pay the annual fee only while you\u2019re working toward a higher credit score. Once you\u2019ve arrived, switch to a different card that doesn\u2019t carry a fee.<\/span><\/b><\/p>\n<p><span style=\"font-weight: 400\">If you fail to pay your balance in full every month or if you have a habit of making late payments, penalties, fees, and interest will probably overshadow any benefits you see from a <strong>credit card<\/strong> with a high annual fee. In other words, don\u2019t expect to benefit from these deals unless you\u2019re extremely responsible with credit. Also, keep in mind that if you must spend more than you otherwise would have to get these deals, they are not really great deals. Before you sign up for any credit card with an annual fee, calculate whether it really offers a net benefit in your specific situation. And think about the consequences before deciding to enter a new credit card agreement.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It often doesn\u2019t make sense to pay an annual fee for a credit card. Plenty of credit cards are offered [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":913,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[2],"tags":[264,263,265,266],"class_list":["post-912","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-credit-cards","tag-annual-fee-for-a-credit-card","tag-plenty-of-credit-cards","tag-what-is-an-annual-fee-for-credit-card","tag-when-is-an-annual-fee-for-credit-card-worth-it"],"_links":{"self":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/912","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/comments?post=912"}],"version-history":[{"count":4,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/912\/revisions"}],"predecessor-version":[{"id":1194,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/912\/revisions\/1194"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/media\/913"}],"wp:attachment":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/media?parent=912"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/categories?post=912"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/tags?post=912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}