What is an annual fee on a credit card? The annual fee of a credit card can vary from $49 to $550. This fee is charged for the privilege of cardmembership and may be offset by rewards programs. Learn how to determine whether or not paying an annual fee is worthwhile. Here are some examples:
Offset annual fee
Offset projects are certificates of environmental and social benefits, which are awarded to companies that reduce their carbon footprint. Offset projects are certificates that are granted to companies for a fixed period of time, usually 20 years. The amount of the annual fee is determined by the number of offset projects listed in the registry. Some offset project registries also offer rebates for the fee, which depends on the number of projects listed within six months of the first listing or the total number of first issuance for all projects.
Earn cash back at U.S. supermarkets
You may not realize it, but the Blue Cash Preferred card from American Express offers 6% cash back at U.S. supermarkets. After spending $6,000 per year, you will earn an additional 1% cash back. With this offer, you can save up to $310 every year on groceries. Whether you’re a big family or a single person, the Blue Cash Preferred card has something for you.
If you’re looking to maximize your reward earnings at U.S. supermarkets, use more than one credit card. For example, the Blue Cash Preferred card from American Express offers 6% back on gift cards purchased at U.S. supermarkets, online app stores, and restaurants. The card even offers cash back rewards for $50 Home Depot gift cards. But you need to be aware of your spending limits and the maximum amount per month.
Offset annual fee at U.S. gas stations
Offset the annual fee by making your purchases at U.S. gas stations and supermarkets. Many gas stations accept credit cards, and if you spend $150 a month on groceries, you’ll get up to 6% cash back. That’s enough to offset the $108 annual fee. Many gas stations also waive the foreign transaction fee. To get the best deal, sign up for a credit card that gives you 6% cash back at U.S. gas stations.
Paying an annual fee is worth it
Many people avoid paying an annual fee for a credit card that offers rewards, but some people find that the fee is worth it. If you use a credit card frequently, you may find that paying the annual fee can save you money. Plus, you may receive higher rewards rates than other cards. If you’re on a tight budget, annual fees aren’t as bothersome. Here are some scenarios in which you’ll find an annual fee worth it.
The annual fee isn’t a deal breaker if you use it wisely. You should make sure to pay off your balance each month in full to maximize benefits and rewards. Otherwise, you’ll end up paying a high interest rate, which adds to your credit card debt. Make sure that the benefits outweigh the annual fee.