So we ditched the card and now use another credit card with no annual fee that provides us with travel points which is what we are really looking for. The point is to assess the benefits, can you use them and what does it cost you to get this card.
Regardless of what the fee is, it is the benefits that are valuable. They are usually more valuable than the annual cost, if you use them. For example, if you rent a lot of cars and your credit card includes rental car insurance, you can save far more than the cost of the credit card. Another example is insurance for some of the things you purchase using your credit card. A friend bought an iPhone using his credit card. After the warranty was finished from Apple, his phone stopped working.
Fortunately his credit card purchase insurance paid for a new card saving him a great deal of money and paying him far more than the annual fee. Another popular benefit is cash from points that can be used to buy trips, pay for hotels and airfare. If you use these features then it can be quite valuable.
Another example is a credit card that gives you points towards a hotel chain. Marriott, Hilton and Holiday Inn all do this along with others. If you travel and stay in hotels a lot, this might be something that would be interesting. With one card we looked at they charged you $120 per year, but then gave you a coupon for one free night a year.
That pretty well pays for the annual fee and we will use this annual certificate for sure. Depends on your life style and what is valuable to you and your family!
For more thoughts and ideas about credit card use, click here.
Bad debt will not just disappear. You have to take some specific action in your…
When couples retire together there are many issues they have to figure out how to…
Many retirees assume that life will be grand after they retire. They will have lots…
Consumers love to talk about the stocks that have increased in value exponentially. Very few…
Before we answer the question, how do I avoid probate, we should really define what…
Credit utilization is a relatively new term that was initiated because many consumers were being…