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The Points Guy believes that credit cards can transform lives, helping you leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That's why we publish a variety of editorial content and card comparisons: to help you find a great card to turn your goals into reality.
Our site may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened with our partners, and this may impact how or where these products appear. While we don't cover all available credit cards, our editorial team creates and maintains all of the analysis of these cards, and our content is not influenced nor subject to review by any credit card company, bank or partner prior to (or after) publication. Please view our advertising policy and product review methodology for more information.
Guides
How to decide if a credit card’s annual fee is worth paying
Emily Thompson specializes in beginner content as a credit cards editor. She taps into her prior experience as a high school English teacher to help others demystify credit scores and unlock experiences that credit card rewards can make possible.
June 20, 2025 • 12 min read
The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don't cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information.
Editorial note: This is a recurring post, regularly updated with new information and offers.
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By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
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Quick summary
Evaluating whether a premium card's fee is worthwhile involves assessing the value of its benefits and statement credits against your actual usage.
Overlapping benefits and unused credits across multiple cards can lead to unnecessary costs, so reviewing your entire card portfolio is essential.
Statement credits may seem valuable, but only if they align with your regular spending habits and are easy to use.
Travel and shopping protections, as well as the possibility of retention offers, can further influence whether keeping or downgrading a card makes sense.
What to consider
Some benefits or credits may require enrollment or have restrictions, such as being valid only at specific merchants or locations.
Benefit changes over time, such as the removal of certain credits or lounge access, can impact a card's overall value.
Retention offers may be available if you consider canceling, potentially offsetting the fee with bonus points or miles valued by TPG as of June 2025.
What you'll miss from the article
A detailed framework for evaluating the true value of card benefits and credits to make informed decisions about keeping, downgrading or canceling cards.
Generated by AI with support from our editorial team.
Comments
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
The annual fee is how much?
I’m not the only one who asked this when I was new to the credit card world and saw the fee on a premium credit card for the first time. With many of these annual fees topping $500, it’s a fair reaction.
If you’ve actually said this to someone who pays that fee, they were probably quick to tell you how the card makes their life better and why they gladly shell out hundreds of dollars a year for the privilege of using it.
In many cases, we really are able to get far more value from a card than we pay in its annual fee.
But as the card landscape changes, we’re seeing many cards get a refresh with a longer list of benefits — and an annual fee hike.
With this news in mind, how do you decide whether a card’s annual fee is worth paying? Here’s how we break it down.
Look at your card portfolio
After evaluating the value you’re actually getting from a card, look at your full portfolio. It’s often easy to justify an individual card’s annual fee enough times that you pay substantial fees each year across multiple cards.
Take a look at your cards’ benefits and consider the following.
What benefits am I not using?
It’s easy to get excited about a card and apply for it only to find that you’re not maximizing what it offers. Take note if there are credits you keep forgetting to use or just no longer need.
Where do I have overlapping benefits?
If you’ve been using credit cards for a while, chances are good that you have some duplicates of the same benefit. Consider whether you have multiple cards that give you the same elite status, a Global Entry or TSA PreCheck credit or lounge access.
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What changes has this card undergone since I got it?
While some cards have undergone major changes in the past few years, others have recently lost a benefit or two.
One of the easiest ways to determine whether a card’s fee may be justified is to look at the value of the card’s available statement credits.
For instance, we regularly point out that the American Express® Gold Card's $325 annual fee (see ) is easily justified if you can take advantage of the number of annual statement credits. This seems like easy math, but you’ll want to do some additional research before jumping on it.
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If you’re like me and already spend a good chunk of your budget on takeout, the Amex Gold‘s credits are easy to maximize.
I use my up to $10 in monthly Uber Cash when I order Uber Eats and knock out my up to $10 monthly dining statement credit when I order through Grubhub (enrollment is required). But if you don’t order takeout or ride with Uber often, you likely won’t maximize these credits, and that annual fee may not be worth paying. Uber Cash will only be deposited into one Uber account when you add the Amex Gold as a payment method and redeem with any Amex card. Uber Cash is valid on U.S. purchases.
Are the credits for things you’re already spending money on?
If you aren’t already spending money on what your card will give you credits for, the card isn’t saving you any money.
The Amex Platinum, for example, comes with up to $300 Equinox statement credit each year (subject to auto-renewal; enrollment required). If you’re currently paying for an Equinox membership out of pocket, this will effectively give you up to $300 back. If you aren’t, you’ll end up spending more for a membership to take advantage of the credit than you would if you didn’t have the card (or the membership) at all.
As for the Venture X’s credit, it can only be used for travel booked through Capital One Travel. This means that, at the very least, you’ll have to go through the portal to book your travel.
It can also mean you won’t get a full $300 of value from the credit since you may not get the best price in the portal and will likely sacrifice any elite status perks you would get if you booked directly.
Calculate the value of the card’s other perks and benefits
While statement credits are the easiest way to determine whether a card’s annual fee is worth paying, they’re far from the only benefit you’ll get with a card. Many cards — especially cobranded ones — come with additional perks that provide value, though the exact value will vary widely depending on the person using them.
BLUE PALACE, A LUXURY COLLECTION RESORT, ELOUNDA, CRETE/FACEBOOK
For instance, a cobranded airline card that comes with free checked bags can provide hundreds of dollars in value each year to someone who regularly checks a bag. But if you’re team carry-on, this perk may be entirely worthless to you.
However, if you already have access through your Chase Sapphire Reserve, this benefit will not add value if you decide to get the Bonvoy Brilliant. In this case, you would want to ensure the Brilliant’s other benefits would be valuable enough to make its fee worth paying.
Does the benefit actually make your life easier?
A benefit isn’t valuable if you have to work too hard to use it.
For example, you may be excited by the Centurion Lounge access you’ll get with the Amex Platinum, but if you don’t already regularly fly through an airport with a Centurion Lounge, you may find yourself trying to plan your travel specifically to have a layover in an airport where you can take advantage of this access.
If you aren’t careful, you may spend more time and money just to use your card’s benefit. Ensure your card benefits are working for you, not vice versa.
Would you pay for these benefits out of pocket without the card?
This question is an easy way to determine how your card serves you. I could sing the praises of Global Entry and TSA PreCheck all day and am among the many TPG staffers who would gladly pay for this access even if I didn’t get it through a credit card.
LESLIE HARVEY/THE POINTS GUY
However, I do not feel the same about a Clear+ membership. I’ve never seen a Clear line moving much faster than my TSA PreCheck line, so I don’t feel the need to fork over $219 annually for that occasional time saver. As such, a Clear Plus credit isn’t a card benefit that saves me money.
But someone who does want a Clear+ membership will easily justify the American Express® Classic Green Card‘s $150 annual fee since one of the card benefits is a full credit for this membership (enrollment required; subject to auto-renewal). The Amex Classic Green is no longer accepting applications.
The information for the American Express Classic Green Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Look at the card’s travel and shopping protections
If you have a card with solid travel protections, you know just how valuable it can be when your bag doesn’t reach your destination or you find yourself stranded by a canceled flight. Instead of shelling out for your own hotel room or waiting for an airline to provide compensation, your credit card can provide hundreds of dollars of reimbursement in these sticky situations.
If your baggage is delayed, for instance, you’ll be glad to have the Chase Sapphire Preferred® Card (see ) in your wallet. Chase will reimburse you (up to $100 per day, up to five days when baggage is delayed more than six hours) for items you need to purchase on your trip, like toiletries and clothes, while you wait for your baggage to arrive. Even if you only use one day’s worth of this benefit, you’ll have more than made up for the Sapphire Preferred’s $95 annual fee.
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Similarly, if you make a big purchase only to have it break within a year or two, you know the difference a card’s purchase protection and extended warranty can provide.
While these aren’t always the first benefits we consider when evaluating a credit card’s annual fee, they are worth keeping in mind. Before you cancel or downgrade a card with substantial protections, take a moment to consider what you’ll be left paying if something goes awry and you aren’t protected by your credit card.
If you’re considering canceling or downgrading your credit card, ask for a retention offer before deciding. Sometimes, issuers will offer a chance to earn bonus points or miles through spending as an incentive for you to keep the card for another year.
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For example, TPG contributing editor Matt Moffitt balks at the $895 annual fee (see ) that posts to his Amex Platinum each year. He always asks for a retention offer using the Amex Chat function on his online account.
He is usually offered 10,000 to 20,000 bonus points for spending $3,000 on the card in three months, which are worth $200 to $400, according to TPG's June 2025 valuations. This essentially drops his annual fee to $495 to $695, which is much more palatable.
At TPG, we believe many credit card annual fees are often worth paying. Still, we know that those fees can add up, and it’s important to consider carefully whether an annual fee is worth paying, both when you’re considering getting a new card and thinking about downgrading one you already have.
To help you decide, take a look at your whole card portfolio and evaluate how much the card’s credits and other benefits add to your life. If it’s not much, you know you can downgrade or skip applying for the card in question. If the card adds significant value, you can feel confident paying its fee each year.
