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

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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

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  • 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 5 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 2 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 Foreign Transaction Fee Credit Rating
N/A 15.49%-19.49% Variable $95 0% Excellent Credit