Is the annual fee worth it?
A fee card has to earn back its fee before it beats a no-fee card. Count only the credits you'd use anyway and the point value you'll actually get.
Reviewed by Alex Thomas · Updated Nov 5, 2026
The fee card wins by $30.00 a year: $330.00 net of the fee, against $300.00 from the no-fee card. The fee card catches up at $9,000 of yearly spending.
Fee card, net of fee
$330.00
+$30.00
No-fee card$300.00
Rewards earned$375.00
Break-even spend$9,000
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Questions
Is a credit card with an annual fee worth it?
Only if the rewards and credits you'd really use add up to more than the fee plus what a no-fee card would earn on the same spending.
What should I compare a fee card against?
A no-fee card that earns a flat rate on everything, such as 1.5% or 2% cash back, is a fair baseline.
Should I count every credit the card offers?
No. Count a credit only if you'd spend that money anyway. A dining credit you never use is worth nothing to you.
Related guides and answers
- How does a credit card work?A credit card lets you borrow up to a set credit limit to pay for things. Each month you get a statement with a minimum payment and a due date. Pay the full balance by the due date and most cards charge no interest on purchases. Pay less and the rest accrues interest at the card's APR.
- How do I get my first credit card?Your first credit card usually comes from your bank or credit union, or as a secured card backed by a refundable deposit. Apply with your SSN or ITIN, a US address and your income. Under 21, you need your own income or a co-signer. Pay on time and your credit history builds from there.
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