Several Chase credit cards have no annual fee. Some of them also offer good sign-up bonuses, as well as rewards. Others have 0% introductory APRs. One of the best Chase credit cards with $0 annual fee is Chase Freedom Unlimited. This card offers 1.5 - 5% cash back. Plus, it comes with an intro APR of 0% for 15 months on both purchases and balance transfers. The card’s regular APR is 17.24% - 25.99% (V). Most no annual fee Chase credit cards require at least good credit for approval.
A Chase credit card with no annual fee will save you money in the long run, as you’re not paying to use the card every year. But that shouldn’t deter you from applying for a Chase card that charges an annual fee. If you travel regularly or plan to make a big purchase, you may end up earning enough rewards where the annual fee will pay for itself.
For example, if you earn the 60,000 points initial bonus with the Chase Sapphire Preferred® Card and those points are worth hundreds of dollars. That pays for the card’s $95 annual fee for several years.
You do not get charged extra if you don’t use your credit card. But if the card has an annual fee or any other regularly-occurring fees, those will be charged to your account even if you don’t use your credit card to make purchases. You cannot be charged an inactivity fee… read full answer, however, because the Federal Reserve Board banned inactivity fees in 2010. And as long as your balance is $0, you won’t be charged interest.
Although you do not get charged extra if you don’t use your credit card, the card’s issuer could close the account due to inactivity after a certain number of months. Each card issuer will have a different policy on closing inactive credit cards – some will close inactive cards after 3 months, and others wait 2 years or more. So if you want to keep your credit card account open, be sure to use your card at least once every 3 months or so.
Credit cards with annual fees are worth it when they save you more than they cost you, especially if your savings exceed what the best no annual fee credit cards available to you would provide. Paying an annual fee on a credit card can unlock bigger initial rewards bonuses, higher ongoing earning rates, and a variety of additional benefits. But you need to make sure you get your money’s worth and actually use the perks you’re paying extra for. If you don't, a credit card that does not charge annual fees may offer better long-term value.… read full answer
Times When a Credit Card Annual Fee Is Worth It
When you can spend enough on the card to earn rewards worth more than the annual fee
Rewards can come as cash back, points, or miles, and if you spend enough to earn lots of them, the rewards alone can pay for your annual fee. If your card gives 1.5% back on purchases and the annual fee is $95, for instance, you’ll have to spend about $6,350 annually to break even with ongoing rewards alone.
When the perks your card offers are things you’re going to buy and use anyway
Annual travel credits, airport lounge memberships, TSA Pre-Check application credits, and free hotel nights are a few high-value perks offered by some credit cards. If you were planning to spend money on these things anyway, the annual fee on a credit card might start to seem like a deal.
When it would save you more than the best card with no annual fee
If you crunch the numbers and determine that a card with an annual fee would save you the most money at the end of the day, even considering the fixed yearly cost, then go for it. Just make sure to reevaluate if your spending or payment plans change.
To figure out if a credit card’s annual fee is going to be worth paying, consider how much you spend – overall and in the card’s major rewards categories. Then calculate how much you would earn with each card’s rewards structure. And evaluate the practical value of the card’s other perks – it’s good to be realistic about how often you’ll use them. Finally, subtract the annual fee. The remainder is how much the card could save you, assuming you pay the bill in full every month and avoid finance charges.
The Chase credit card annual fees depend on the card. Several Chase credit cards come with a $0 annual fee, while others charge up to $550, annually.
Chase applies an annual fee to some of its credit cards to help cover the cost of the card’s benefits and rewards. For example, the Chase Sapphire Preferred® Card and the Chase Sapphire Reserve® card are among the best travel rewards cards on the market. These cards annually charge $95 and $550, respectively. There’s also a host of co-branded airline and hotel rewards cards that offer an array of perks and rewards, so you should plan to pay an annual fee if you should decide to use any of these cards.… read full answer
Whether a Chase credit card with an annual fee is worth it depends on your lifestyle, your spending habits, and rewards and travel preferences. If you’re a frequent traveler and loyal to a particular airline or hotel chain, the annual fee will more than pay for itself. If you don’t travel much, or don’t anticipate making any big purchases over the course of a year, stick with a Chase credit card with no annual fee.
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