Does your credit card requires annual fee? If so, it may bring you etra costs when using the card. However, at the same time, you are enjoying special services that the card offers you. If you use the rewards in a good way, the benefits will outweigh the costs of annual fee.
People with special needs, such as travelling a lot as a business man, should apply for a credit card with annual fee, because it will offer travel rewards.
If you don’t want to pay the annual fee but would like to enjoy the rewards, some credit card issuers may satisfy you.
Some credit card companies would waive the annual fee in the first year in order to attract new customers. At the second year, the annual fee is automatically charged to your account. You can then decide whether to close the card or not.
If you find out that the annual fee is costly, you can close the account before the beginning of the next credit card year. But remember, you should first consult the credit card company to assess the impact on your credit score and use all the rewards that you accumulated. You can also check if you can switch to a no-fee credit card with the same issuer, or you can downgrade your account to a no-fee one.
Some credit cards might offer annual fee waiving policy based on your purchases. That is, if you spend enough money by using this credit card, the credit card company might waive your annual fee.
Before applying for a credit card with annual fee, you should first contact your credit card issuer to see if your annual fee could be waived based on your account activity, your payment amount, or length of time as a customer.