Reader
Question

(Video) Sunday Reader Question: Avoiding Credit Annual Fees and Keeping Points

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.

TPG reader Serena asks:

“Many of the cards have a $0 introductory annual fee, but then some sort of annual fee after that.  Do you keep the card after a year and pay the annual fee, or transfer your points and close the account once the year is up?  And does that do anything to your credit report?”

Here are some of the factors you need to consider when deciding whether to keep a card or cancel it before the annual fee is due:

As always, do the math and consider how much value you get from a card and the points it earns you before deciding whether to keep it or cancel it.

Ink Plus® Business Credit Card

Apply Now
  • Earn 60,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
  • Earn 5X points per $1 on the first $50,000 spent in combined purchases at office supply stores and on cellular phone, landline, internet and cable TV services each account anniversary year.
  • Earn 2X points per $1 on the first $50,000 spent in combined purchases at gas stations and hotel accommodations when purchased directly with the hotel each account anniversary year.
  • Earn 1 point per $1 on all other purchases—with no limit to the amount you can earn
  • No foreign transaction fees
  • Employee cards at no additional cost
  • $95 Annual Fee
Intro APR Regular APR Annual Fee Balance Transfer Credit Rating
N/A 15.49%-19.49% Variable $95 See Terms Excellent Credit