Is It Worth Paying an Annual Fee for a Credit Card?
Quick Answer
Paying an annual fee for a credit card might be worth it if the card offers rewards and benefits that you think are more valuable than the annual fee. However, it’s generally not worth it if you’re paying off credit card debt.
Paying an annual fee for a credit card might be worth it depending on the card's rewards, cardholder benefits and whether you plan to carry a balance. You can use your existing spending habits to calculate if rewards and other benefits outweigh the cost of an annual fee. For many cardholders, a card with an annual fee likely will not be worth it if you wind up carrying a balance and accruing interest.
What Is an Annual Fee?
Some credit cards charge you an annual fee simply for having the credit card. Generally, the fee gets added to your card's balance when you open a new credit card, and charged again on each cardholder anniversary. Depending on the card, it might range from around $50 to over $600 per year.
Annual fees used to be most common on cards for people who were new to credit or rebuilding their credit. But today, people with good to excellent credit scores often pay an annual fee to get cards with features such as rewards, travel insurance, cellphone insurance, purchase protections and lounge access. The card issuer can use the income from annual fees to help pay for these benefits.
Large credit card issuers are also more likely to charge an annual fee than smaller issuers, and average annual fees have increased in recent years.
Learn more: What Is a Credit Card Annual Fee?
Best rewards cards of 2026
Compare cards from our partners that earn points, cash back or miles on everyday spending.
Offers from our partners
Citi Double Cash® Card
Intro APR:0% for 18 months on Balance Transfers
Ongoing APR:17.49% - 27.49% (Variable)
Rewards:2% (cash back)
Annual Fee:$0
Blue Cash Everyday® Card from American Express
Intro bonus:You may be eligible for as high as $200 cash back after spending $2,000 in purchases on your new Card in the first 6 months. Welcome offers vary and you may not be eligible for an offer. Cash back is received as Reward Dollars, redeemable for statement credit or at Amazon.com checkout. Terms Apply.
Intro APR:0% on Purchases and Balance Transfers for 15 months
Ongoing APR:19.49%-28.49% Variable
Rewards:1% - 3% (cash back)
Annual Fee:$0
Discover it® Chrome
Intro bonus:INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards.
Intro APR:0% intro APR for 6 Months on Purchases and 0% intro APR for 18 Months on Balance Transfers
Ongoing APR:17.49% - 26.49% Variable APR
Rewards:1% - 2% (cash back)
Annual Fee:$0
The opensky® Secured Visa® Credit Card
Ongoing APR:23.89% Variable
Rewards:10% (cash back)
Annual Fee:$35
Credit One Bank American Express® Card for Rebuilding Credit
Ongoing APR:29.74% Variable
Rewards:1% (cash back)
Annual Fee:$75 First year. $99 thereafter, billed monthly at $8.25
Blue Cash Preferred® Card from American Express
Intro bonus:You may be eligible for as high as $300 cash back after spending $3,000 in purchases on your new Card in the first 6 months. Welcome offers vary and you may not be eligible for an offer. Cash back is received as Reward Dollars, redeemable for statement credit or at Amazon.com checkout. Terms Apply.
Intro APR:0% on Purchases and Balance Transfers for 12 months
Ongoing APR:19.49%-28.49% Variable
Rewards:1% - 6% (cash back)
Annual Fee:$0 intro annual fee for the first year, then $95.
American Airlines AAdvantage® MileUp® Card
Intro APR:0% for 15 months on Balance Transfers
Ongoing APR:19.49% - 29.49% (Variable)
Rewards:2x (Miles per dollar)
Annual Fee:$0
Citi Strata Premier® Card
Intro bonus:Earn 60,000 bonus ThankYou® Points after spending $4,000 in the first 3 months of account opening, redeemable for $600 in gift cards or travel rewards at thankyou.com.
Ongoing APR:19.49% - 27.49% (Variable)
Rewards:1x - 10x (Points per dollar)
Annual Fee:$95
Costco Anywhere Visa® Card by Citi
Ongoing APR:18.74% - 26.74% (Variable)
Rewards:1% - 5% (cash back)
Annual Fee:$0
American Express® Gold Card
Intro bonus:You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.
Ongoing APR:See Pay Over Time APR
Rewards:1x - 4x (Points per dollar)
Annual Fee:$325
First Latitude Secured Mastercard® Cash Back Rewards
Ongoing APR:27.49% Variable
Rewards:1% - 10% (cash back)
Annual Fee:$0
Citi® / AAdvantage® Platinum Select® World Elite Mastercard®
Ongoing APR:19.49% - 29.49% (Variable)
Rewards:2x (Miles per dollar)
Annual Fee:$99, waived for first 12 months
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:$75*
Citi® / AAdvantage® Globe™ Mastercard®
Ongoing APR:19.49% - 29.49% (Variable)
Rewards:1x - 6x (Miles per dollar)
Annual Fee:$350
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:Introductory fee of $75 for the first year. After that, $99 annually.*
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:$39*
Credit One Bank® Platinum X5 Visa® Metal Card
Ongoing APR:29.74% Variable
Rewards:1% - 5% (cash back)
Annual Fee:$95
First Progress Prestige Secured Mastercard® Cash Back Rewards
Ongoing APR:13.49% Variable
Rewards:1% - 10% (cash back)
Annual Fee:$49
First Progress Select Secured Mastercard® Cash Back Rewards
Ongoing APR:17.49% Variable
Rewards:1% - 10% (cash back)
Annual Fee:$39
Credit One Bank® Premier American Express® Credit Card
Ongoing APR:29.74% Variable
Rewards:1% (cash back)
Annual Fee:$39
Marriott Bonvoy Brilliant® American Express® Card
Intro bonus:Earn 200,000 Marriott Bonvoy® bonus points after you use your new Card to make $6,000 in purchases within the first 6 months of Card Membership. Offer Ends 5/13/2026.
Ongoing APR:19.49%-28.49% Variable
Rewards:2x - 6x (Points per dollar)
Annual Fee:$650
Discover it® Miles
Intro bonus:UNLIMITED BONUS: Unlimited Mile-for-Mile match for all new cardmembers. Discover gives you an unlimited match of all the Miles you’ve earned at the end of your first year. There’s no signing up, no minimum spending or maximum rewards. Just a Miles-for-Miles match. You could turn 35,000 Miles into 70,000 Miles.
Intro APR:0% intro APR for 15 months on Purchases and Balance Transfers
Ongoing APR:17.49% - 26.49% Variable APR
Rewards:1.5x (Miles per dollar)
Annual Fee:$0
Delta SkyMiles® Gold American Express Card
Intro bonus:Earn 70,000 Bonus Miles after you spend $3,000 in purchases with your new Card, and an additional 20,000 bonus miles after you make an additional $2,000 in purchases on the Card, both within your first 6 months. Ends 04/01/2026.
Ongoing APR:19.49%-28.49% Variable
Rewards:1x - 2x (Miles per dollar)
Annual Fee:$0 introductory annual fee for the first year, then $150.
Credit One Bank® Premier American Express® Unlimited Rewards Card
Ongoing APR:29.74% Variable
Rewards:1% (cash back)
Annual Fee:$0
Hilton Honors American Express Surpass® Card
Intro bonus:Earn 130,000 Bonus Points plus a Free Night Reward after you spend $3,000 in purchases on the Card in the first 6 months of Card Membership. Offer Ends 4/15/2026.
Ongoing APR:19.49%-28.49% Variable
Rewards:3x - 12x (Points per dollar)
Annual Fee:$150
Delta SkyMiles® Blue American Express Card
Intro bonus:Earn 10,000 bonus miles after you spend $1,000 in purchases on your new Card in your first 6 months.
Ongoing APR:19.49%-28.49% Variable
Rewards:1x - 2x (Miles per dollar)
Annual Fee:$0
One Key™ Card
Intro bonus:Limited Time Offer: Earn $300 in OneKeyCash™ after you spend $1,000 on purchases in the first 3 months. OneKeyCash is not redeemable for cash and can only be used on Expedia®, Hotels.com® and Vrbo®. To learn more, please refer to the One Key Terms and Conditions at www.expedia.com/one-key-terms.
Ongoing APR:18.49%, 23.49%, or 28.49% Variable APR
Rewards:1.5x - 3x (Points per dollar)
Annual Fee:$0
One Key+™ Card
Intro bonus:Earn $350 in OneKeyCash™ after you spend $3,000 on purchases in the first 3 months. OneKeyCash is not redeemable for cash and can only be used on Expedia®, Hotels.com® and Vrbo®. To learn more, please refer to the One Key Terms and Conditions at www.expedia.com/one-key-terms.
Ongoing APR:18.49%, 23.49%, or 28.49% Variable APR
Rewards:2x - 3x (Points per dollar)
Annual Fee:$99
Avant® Cashback Rewards Mastercard® - With A Higher Credit Limit
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:$125*
Avant® Cashback Rewards Mastercard®
Ongoing APR:35.99%*
Rewards:1% (cash back)
Annual Fee:$0*
See all our best rewards credit cards for 2026.
When It's Worth Paying an Annual Fee
Paying an annual fee could be worth it when you recoup more in rewards and benefits than you pay each year. You can look at several factors to make this calculation for yourself:
- Welcome bonuses: Many cards offer an intro or welcome bonus when you meet certain requirements. The bonus might be enough to offset the annual fee for several years.
- Rewards rates: You might receive more cash back, points or miles on purchases if your rewards card charges an annual fee.
- Statement credits: A statement credit can automatically lower your card's current balance when you make an eligible purchase.
- Other cardholder benefits: Some benefits are nice to have but can be difficult to value, such as access to airport lounges or loyalty status in a rewards program.
For example, if a card offers 2% cash back and charges a $100 annual fee, you would need to make at least $5,000 in purchases on the card to break even on the annual fee because $5,000 x 2% equals $100.
Most comparisons aren't that straightforward, though. Consider a card that has:
- $470 annual fee
- $250 dining credit
- $120 streaming credit
- $100 travel credit
- Status in a loyalty program
At first glance, it might seem like the rewards above would completely offset a $100 annual fee. However, you'll want to review the terms and conditions for the statement credits.
Taking a closer look at the $120 dining credit, it might actually be a $10 monthly credit that you only receive after dining at specific restaurants. You might "lose" that value if you don't go to one of the eligible restaurants each month. Realistically, you'll also likely spend more than $10 on a meal—money that you might have saved otherwise.
The value of the loyalty status can also be subjective. It might lead to lots of savings or be a minor nicety depending on how frequently you travel. Other cardholder benefits can similarly have a subjective value.
Take these considerations into account when you're trying to figure out if it's worth getting a card with an annual fee.
Learn more: How to Choose a Rewards Credit Card
Paying an Annual Fee Isn't Always Worth It
Paying an annual fee for a credit card might not be worth it if:
- You're paying off credit card debt. Cards with annual fees might have relatively high interest rates. You could try getting a balance transfer card that doesn't have an annual fee, transfer the balance and pay it down while it's not accruing interest. Or, try to get the fee waiver or switch cards and use the savings to pay off the balance sooner.
- You're getting a card for building credit. You might not qualify for many credit cards if you have bad credit. However, there are credit cards that don't require good credit and don't charge an annual fee. There are also ways to improve your credit without a credit card.
- The card's terms and benefits changed. Card issuers can change the terms, benefits and fees on a card. Occasionally review the card to make sure the annual fee is still worth it, and consider downgrading or possibly canceling the card if it isn't.
Learn more: Should I Cancel a Credit Card With an Annual Fee?
How to Get Your Credit Card's Annual Fee Waived
If your cardholder anniversary is coming up, you could try to save money by getting your fee waived, reduced or offset. Card issuers don't have to offer you anything, but it doesn't hurt to call and ask if the issuer can waive the fee or another offer. For example, you might receive a statement credit or bonus rewards after meeting certain conditions instead of getting a waiver.
You might want to contact the issuer before the fee is charged and, if that doesn't work, shortly after the charge. Additionally, some card issuers will waive your annual fee if you're an active-duty military member, but you might need to inform them about your deployment.
If you can't get the fee waived or reduced, you might want to try switching to a card that's part of the same rewards program and doesn't charge an annual fee. Or, consider canceling the card to avoid paying the fee and getting a new card instead. Just remember that closing a credit card can have negative consequences for your credit.
Learn more: Do I Lose My Rewards When My Credit Card Closes?
Get Matched With Your Next Card
Paying an annual fee for a credit card might make sense, but it depends on how much the fee is and the card's benefits. Your credit score can also affect your options when you're applying for cards with and without annual fees. You can check your credit score for free from Experian. You can also compare cards' features and fees and Experian can match you with card offers based on your unique credit profile.
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About the author
Louis DeNicola
Louis DeNicola is freelance personal finance and credit writer who works with Fortune 500 financial services firms, FinTech startups, and non-profits to teach people about money and credit. His clients include BlueVine, Discover, LendingTree, Money Management International, U.S News and Wirecutter.
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