Compare Credit Cards in 2015: Pros and Cons

When it comes to choosing the right credit card, there are several factors to consider. One of the most important is whether or not the card charges an annual fee. In this article, we'll explore the pros and cons of paying an annual fee for your credit card.

Rewards and Benefits Outweigh the Fee

One of the main advantages of paying an annual fee is that you can earn rewards and benefits that make up for the cost. For example, some cards offer points or cashback on everyday spending, while others provide travel insurance or concierge services. These perks can be especially valuable if you use them frequently.

Sign-up Bonuses Can Make Up for the Fee

Another benefit of paying an annual fee is that you may receive a sign-up bonus that makes up for the cost. This bonus can be in the form of points, miles, or cashback, and it's often awarded after you meet certain spending requirements within a set period.

When to Pay an Annual Fee

You might want to consider paying an annual fee for a credit card when you're looking for a premium product with additional benefits. These cards may offer travel insurance, concierge services, or exclusive events that make the fee worthwhile.

Downgrading Your Card: What You Need to Know

If you decide you no longer want to pay an annual fee, you may be able to downgrade your card to a no-annual-fee version. However, this is not always possible, and you should check with your issuer before making any changes to your account.

Closing a Credit Card Account: The Impact on Your Score

Closing a credit card account can lower your credit score, as it may affect the ratio of available credit to total credit on your report. However, if you have very good credit (a FICO score of 740-799) and are willing to take a small hit to your score, you may still be able to close an account and open a new one with no annual fee.

Using Your Points Before Making the Switch

If you're planning to close an account and open a new one, you should use up any points or rewards you've earned before making the switch. This way, you can avoid forfeiting your earnings and get the most out of your credit card.

No-Annual-Fee Cards: A Good Option for Beginners

If you're just starting to build your credit history, a no-annual-fee card may be a good option. These cards often have lower fees or no fees at all, making them more accessible to beginners.

Paying an annual fee for a credit card can provide additional benefits and rewards that make the cost worthwhile. However, it's essential to weigh these pros against the cons before making a decision. If you're not sure whether an annual fee is right for you, consider your spending habits and financial goals before choosing a credit card.

Credit Cards With No Foreign Transaction Fees

If you travel frequently or conduct business abroad, look for credit cards with no foreign transaction fees. These cards can help you avoid extra charges when making international purchases.

By considering these factors and weighing the pros and cons of paying an annual fee, you can make an informed decision about which credit card is right for you.

Compare credit cards 2015