Anyone pay a CC annual fee willingly because of a benefit?

[QVCshopper]

We have the 529 Fidelity College Rewards card. We are grandfathered at 2% (I think it is now 1.5% for new signups) on every purchase and there is no annual fee. All of our rewards get put into a 529 plan for our kids, and we've done pretty well with it since we charge everything that we can.

Debating the Southwest card; I recently got that offer in the mail.

 

[jodifla]

I absolutely hate to pay an annual fee for a credit card, but did it with Delta because of the benefits. The card allows me to get a free bag on each flight for up to 6 people in my party. At $25 a bag, the card paid for itself the first flight I used it on. Since Delta is one of the few airlines that flies out of my little airport, it's a good deal for me.

Yes, I even upgraded to the Platinum card which gives us a free companion ticket each year. We have one annual trip where the airfare is just outrageous, so it saves us hundreds of dollars each year just on the one plane ticket.

Then you add in all the baggage fees, and the savings jumps to pushing a grand a year for my family. Worth the fee for that.

 

[Interpol]

Sorry to dredge up an old thread, but it appeared to be the most appropriate one.

Recently received an invitation to upgrade from my Amex Platinum to Centurion (Black), so I jumped on it. Annual fees are hefty ($5000 initiation fee, $2500/year) but you get a boatload of travel benefits:

Access to American, Delta, US Air, Priority Pass airport lounges
Automatic Gold status on Delta and Virgin, Platinum status on US Airways frequent flyer programs
Automatic membership in Avis Presidents Club, Hertz #1 Club Gold, National Emerald Executive
Automatic Starwood Preferred Guest Gold status
Free international business/first class companion airline tickets
24/7 Concierge
Fine Hotels & Resorts program
$200 annual airline fee/incidentals credit

Plus a bunch of other benefits. Considering that a single annual airline lounge membership is $300-$400, it's well worth the annual fee.

 

[scbelleatheart]

Sorry to dredge up an old thread, but it appeared to be the most appropriate one.

Recently received an invitation to upgrade from my Amex Platinum to Centurion (Black), so I jumped on it. Annual fees are hefty ($5000 initiation fee, $2500/year) but you get a boatload of travel benefits:

Access to American, Delta, US Air, Priority Pass airport lounges
Automatic Gold status on Delta and Virgin, Platinum status on US Airways frequent flyer programs
Automatic membership in Avis Presidents Club, Hertz #1 Club Gold, National Emerald Executive
Automatic Starwood Preferred Guest Gold status
Free international business/first class companion airline tickets (booked thru AMX travel only in certain fare codes)
24/7 Concierge
Fine Hotels & Resorts program
$200 annual airline fee/incidentals credit

Plus a bunch of other benefits. Considering that a single annual airline lounge membership is $300-$400, it's well worth the annual fee.

I get all those benefits except what is bolded and Free Global Entry and Sentry with my AMX Plat card and pay $450 for the first card and $300 the second. I can't justify $7500 for the card and we travel extensively for work.

 

[Interpol]

I get all those benefits except what is bolded and Free Global Entry and Sentry with my AMX Plat card and pay $450 for the first card and $300 the second. I can't justify $7500 for the card and we travel extensively for work.

Yes, the Amex Plat is a great card too with about 80% of the benefits you get from the Black for about 25% of the annual fee. I upgraded from a Plat that I've had for several years and it was my go-to card for most purchases.

Incidentally, the Priority Pass membership you get with the Centurion is different than the Plat in that it allows for free admission of guests too, and the concierge (Centurion Concierge) is different. The Avis membership you get with Plat is Avis Preferred while with Black you get Avis President's. There are also quite a few more smaller but nice benefits you get with Black that you don't get with Plat.

Amex is really secretive about what their criteria is for who gets a Black invitation. It used to be a minimum spend of $250,000/year but rumors are that minimum has recently increased to $500,000.

 

[beansmom]

we have a citicard with a fee but over the last four years, that card has given enough ff miles to fly to London, Italy and Hawaii round trip for free. (well, $20 for 2 is free to me!)

well worth it to us.

 

[bettymae1121]

oops, didn't realize this was an old thread...

 

[wallawallakids]

I do. I pay $75/year. Yes, that is a lot but I make it back and more. I have an American Express blue preferred card. I LOVE it. I put every purchase I make and every bill I pay on it. I get 6% back (yes, 6!) at grocery stores, 3% back at department stores and at gas stations, and 1% back on everything else. I have 4 kids...who all eat A LOT!!! We pay $$$$ out in groceries. Plus, if you buy gift cards at your local supermarket, to buy presents with or to use for shopping...you still get that 6% back. It has been a great thing for me. I just pay myself back in the cash. I get the fee back quickly and the rest I get is extra. I don't carry a balance, so it isn't really an issue for me to have a higher APR, which these cards do normally have to make up for the larger % back. I find it a great way to save money/make a little money.

 

[Green Tea]

We do for a couple of cards.....the benefits outweigh the annual fee. One is Marriott that you mentioned, OP. Though I think the annual fee is now up to $89. Also, the Venture Card from Capital One. Can't remember what that fee is.....I just got the card under the 100,000 mile point bonus. That can be equated to either $1000 worth of travel or $1000 cash, so that covers any annual fee for a long time.

 

[alyssa810]

I also pay a fee for my Delta AMEX, my Starwood AMEX, and my SW Visa. Like PPs mention, the fees are well worth the benefits. We've had several free flights domestically and internationally, and lots of free hotel nights! I will say that I don't plan to upgrade to Disney visa with the fee because with the Chase Freedom, I'm getting 5% back on various categories during the year, and I don't pay a fee, and my cash back rewards all go to our "Disney" fund anyway.

 

[girli565]

I pay an annual fee on my American Express (the perks outweigh the cost of the annual fee) and now my BoA credit card has implemented an annual fee. It's a pretty high limit card so I don't think I'll close it but I may switch to another type of card that accumulates airline miles.

 

[beansmom]

oops, didn't realize this was an old thread...

neither did i but it is interesting to see my previous response posted july 2011 and to see that since that time we have also achieved the free airfare to hawaii. Yep...we'll be keepin that Citicard.

 

[swilshire]

None of my current credit cards have an annual fee. I'm curious if anyone willingly pays an annual fee to have a certain credit card, because an incentive outweighs the cost of the fee.

For example, I just saw an offer for a Marriott credit card. Annual fee is $65 (after the first year which is free). One of the benefits offered is one free night each year. If a person were traveling anyway and would use that free night's stay each year for sure, then $65 would seem to be a fair trade. If other incentives or rewards seemed attractive enough, then maybe the annual fee would be tolerable whereas usually I refuse to pay annual fees.

Not saying that I plan to get the Marriott card. Seeing the offer just got me curious. So have any of you tolerated paying an annual fee because the incentives/rewards made it worthwhile?

This is the only annual fee card I've ever had for more than the first year (to get bonus points/credits). It helps me make Marriott Platinum every year which results in extra points for every stay. We also save more than the fee using the free room.

My only issue has been the timing of the free annual night. It expires after 6 months. I canceled the card once because the time of year for the free night was not vacation time for us. I rejoined in the late Spring, allowing us to use it over the summer.

Sheila

 

[Sheaboys]

Yes. I pay $79 a year for my Amazon Prime card, with the FREE shipping, the Kindle downloads, etc. That makes the fee well worth it. After all, Santa lives at the Amazon ya know.

And I yes, I have a Southwest RR card, I have the one with $69 fee, for 25,000 miles, bought one-way tickets with it (7 adult), then got an offer to apply for the one with 50,000 miles, so I called told them I just got the card, and they applied the additional 25,000 points to my account for the same $69 fee. I was then able to get 7 one-way tickets home for a whopping $17.50! So I paid a total of $157 round-trip for 7 tickets, and $69 for the card. So yes, another well worth it.

 

[mermaidwannabe]

I do. I pay $75/year. Yes, that is a lot but I make it back and more. I have an American Express blue preferred card. I LOVE it. I put every purchase I make and every bill I pay on it. I get 6% back (yes, 6!) at grocery stores, 3% back at department stores and at gas stations, and 1% back on everything else. I have 4 kids...who all eat A LOT!!! We pay $$$$ out in groceries. Plus, if you buy gift cards at your local supermarket, to buy presents with or to use for shopping...you still get that 6% back. It has been a great thing for me. I just pay myself back in the cash. I get the fee back quickly and the rest I get is extra. I don't carry a balance, so it isn't really an issue for me to have a higher APR, which these cards do normally have to make up for the larger % back. I find it a great way to save money/make a little money.

Wow! I've never heard of 6%!! I already have a Delta AMEX and a Costco AMEX, but if I could get a deal like that I would get the Blue AMEX too. Going to search now!

 

[hsmamato2]

yes. I pay fees on my southwest cards,b/c of the IMMENSE side benefits I'm getting. And the way the points build so fast.... and can be redeemed for far more than I could get from my 'free' cashback card I had been using.

 

[wallawallakids]

Wow! I've never heard of 6%!! I already have a Delta AMEX and a Costco AMEX, but if I could get a deal like that I would get the Blue AMEX too. Going to search now!

YES!! It is awesome. I think you will like it. We used to have the Costco AMEX but I switched to this one and I am so glad I did. It is amazing how much you get back and the best thing is that it is cash. Good luck.

 

[mermaidwannabe]

YES!! It is awesome. I think you will like it. We used to have the Costco AMEX but I switched to this one and I am so glad I did. It is amazing how much you get back and the best thing is that it is cash. Good luck.

Thanks! I may open a Southwest Rapid Rewards Card now in order to get Universal tickets, so may wait a month or two to apply for the AMEX. 6% is awesome!

 

[Interpol]

If you're looking for Universal tickets as a credit card reward, also consider Amex Membership Rewards points:

http://www.disboards.com/showthread.php?t=2920351

 

[mermaidwannabe]

If you're looking for Universal tickets as a credit card reward, also consider Amex Membership Rewards points:

http://www.disboards.com/showthread.php?t=2920351

Thanks for the link!!