Benefits from credit cards can be really helpful. There’s a lot you have to think about before you jump right into a rewards program. To help you make sure you don’t waste your money on empty promises, here’s what you should consider before getting a credit card with an annual fee.
What to Consider Before Getting a Credit Card with an Annual Fee
Are the benefits worth it?
When cards offer amazing rewards, lower interest rates, and better payment options, it means a fee for consumers. In order for these credit card issuers to afford handing out these benefits, they need to make money in other ways. That’s where the annual fees come in. So when you’re looking at a credit card with an annual fee, take a look at what benefits they offer and compare the cost to what you’ll get. Is the annual fee too high for what you’ll be getting? If so, that credit card might not be worth it.
Will you use the benefits?
If your’e paying the annual fee but you’re not taking advantage of the benefits, then the annual fee is a waste of money. It’s actually not unusual to see people paying an annual fee for a credit card and not take advantage of the rewards available to them.
Are the benefits easy to use?
If you find yourself jumping through a bunch of hoops to receive your rewards, they’re really not that valuable. When checking out credit cards, look for a link to the rewards page on their site. It should be completely clear how many points you have and what you can get with those points. If you need to talk to a customer service rep, then it should be easy to find their number. Upon calling them, you should get straight through to a real person and get clear responses to all of your questions.
Are there hidden fees?
Sure, it might look like a great deal on the surface, but once you start digging deeper, you could find that it’s actually not. Watch out for red flags like having to pay an extra fee to actually get your rewards. Some cash back cards will make you spend a certain amount of money before you can receive your check.
Is this the best deal out there?
Compare different rewards programs. Call customer service and ask them for more information if you don’t understand something. A lot of cards don’t offer a lot of information about their rewards programs, so it’s important to know what you’re getting into.
If you already have a card, check every so often to make sure your benefits are still there. You don’t want to suddenly lose benefits you’ve always taken advantage of. And don’t be afraid to ask ask your card issuer to waive the annual fee. The worst thing they can say is no, so it doesn’t hurt to ask. Who knows, it might pay off and they’ll waive the fee for the year.
If you have any questions regarding what to consider before getting a credit card with an annual fee, give us a call at 1-866-991-488. We’re here to help!
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