Are Credit Card Annual Fees Worth It?

Let’s talk about something a lot of people wonder when they first get into points and miles: Are credit card annual fees actually worth it?

It’s a fair question. And while the answer depends on how you use the card, in many cases, the value far outweighs the cost.

When a Fee Leads to Free Flights (and Unlimited Mac & Cheese)

That’s not just theoretical—it actually happened to us.

What if paying a fee was the cheapest way to fly your whole family to Hawaii and get lounge access with all-you-can-eat mac & cheese during your layover?

Our family of six flew home from Hawaii for just $5.60 per person. During our layover, we walked into the airport lounge—every single one of us—thanks to a card with an annual fee. Even my seven-year-old was living her best life with a bowl of mac & cheese and a comfy chair. That lounge stop made the whole travel day feel like a win.

Yes, that card charges an annual fee. However, the welcome bonus alone made it more than worth it. Everything after that—like lounge access—is part of how I decide whether to keep the card long-term.

👉 Want to see exactly how I use my cards with annual fees? I share a full example in this post about flying our family to Hawaii using points.

Why the Welcome Bonus Often Justifies the Annual Fee

When someone asks if credit card annual fees are worth it, I always start with this: the welcome bonus.

Most of the highest-value bonuses show up on cards with annual fees. And those bonuses can be worth hundreds—sometimes over a thousand—dollars in travel.

Here’s how I think of it: If you handed someone $95 and they gave you $750 in flights, would you do it?

That’s essentially what you’re doing with a welcome bonus. It’s why I don’t just hold one credit card anymore.

👉 If you’re just starting, check out my beginner guide to credit card points and miles.

After the Bonus: Are the Annual Fee Benefits Still Worth It?

Once the welcome bonus is in the bag, it’s time to ask: Are the ongoing benefits of the annual fee worth it?

Here’s what I personally look at:

• Do the credits offset the annual fee?
• Am I earning enough points to make it valuable?
• Does this card make travel easier or better—especially with kids?

The cards that check all three boxes are the ones I keep. For example, one premium card we use gets our whole family into lounges, includes trip delay protection, and comes with a $300 annual travel credit we always use.

👉 I break this all down in this post about when I keep a card long-term.

Overlooked Credit Card Benefits That Offset Annual Fees

Even after that first year, credit cards with annual fees often come with perks that make a big difference for families:

• Airport lounge access (yes, even for your kids)
• Free hotel nights—sometimes at properties worth $800+
• Automatic hotel status for perks like breakfast and late checkout
• 2X–5X points in everyday categories like dining or groceries
• Travel insurance that covers delays, cancellations, and car rentals

👉 You can read more about how we use free hotel nights here, and how to maximize lounge access here.

The Cards I Keep Because They’re Worth the Annual Fee

If you’re wondering which cards have earned a permanent spot in my wallet, it’s the ones where:

✅ The welcome offer made the first year a no-brainer
✅ The credits or perks continue to save me money
✅ I actually use the benefits regularly

These are the cards I personally recommend when you’re open to paying a fee for more value:

• Cards I always have in my wallet
• My favorite flexible points cards
• Favorite hotel cards
• Premium travel cards that are worth the fee
• Favorite cards to double dip with by pairing with a shopping portal
  👉 Related read: All About Shopping Portals: Rakuten vs. Capital One

When Credit Card Annual Fees Are About More Than Math

Sure, you can compare annual fees to credits and point values. But sometimes, the real value is peace of mind.

It’s not getting stuck in a food desert at the airport.

It’s having your trip delay covered when your flight gets canceled.

It’s watching your kids eat mac & cheese in a quiet lounge instead of melting down by a vending machine.

Some cards help me earn travel. Others help me enjoy it.

The ones that do both? Those are the ones I keep.

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Still Deciding Whether Credit Card Annual Fees Are Worth It?

If you’ve ever asked yourself “are credit card annual fees worth it?”, the answer is: they can be—especially when the welcome bonus covers the fee several times over. After that, it’s all about whether the perks make your travel smoother, easier, or more fun.

If you’re not sure where to begin, here are a few of my go-to lists:

• Best cards for beginners
• Favorite business cards
• Cards that help you skip airport lines (PreCheck, Global Entry, CLEAR)
• Top picks for free night certificates
• Full list of cards offering free night certificates
• Cards that earn a free night from spend
• Hyatt fans—here’s what I’d look at
• Delta, Marriott, and Hilton lovers

👉 Or, just start with my full favorites list

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