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This is the Only Annual Fee Credit Card I Still Have In My Wallet — Here’s Why

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Brett Holzhauer
Updated: 
Edited by: Jessica Merritt
& Jestan Mendame
This is the Only Annual Fee Credit Card I Still Have In My Wallet — Here’s Why
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I’d prefer not pay a yearly fee to have a piece of plastic (or metal) in my wallet, though in many cases, it can make sense to have a credit card with an annual fee because of the benefits value.

However, I’ve removed all credit cards with annual fees from my wallet, except the Chase Sapphire Preferred® Card. Here’s why I’ve decided to avoid annual fees moving forward and why this card is the one exception to the rule.

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Paying Credit Card Annual Fees: Pros and Cons

Over the years, I’ve had numerous credit cards with annual fees ranging from low to high, and I’ve collectively extracted thousands of dollars in value from them.

However, I’ve now reached a point where I prioritize simplicity in my approach to points and miles. This shift means paring down my collection of credit cards and reducing my annual fee expenses. While it’s true that rewards and benefits can often offset these fees, I’d rather focus on 1 card that provides valuable rewards along with the essential benefits and protections I need.

In addition, the credit card landscape has evolved significantly in recent years. Cards with annual fees now often include a long list of statement credits. These modern-day card benefits are more akin to a coupon book, and issuers seem to bank on cardholders underutilizing these perks.

For example, the Platinum Card® from American Express has a $895 annual fee (rates & fees) and a long list of ways to regain value. If you can use all of the card’s benefits (some might require enrollment), the potential value far outweighs the annual fee:

This list alone includes 8 statement credits that you’ll need to monitor throughout the year. With these premium cards, I’ve even had to create a spreadsheet to track the usage of each benefit to ensure I was maximizing each card’s value. This got old fast. It took away from the card’s real purpose of earning travel rewards on everyday purchases and often resulted in unintentional spending.

Bottom Line:

While other benefits, like travel insurance, don’t require tracking and can help justify the annual fee, I find some of these perks, such as the digital entertainment and Walmart+ credits, to be unnecessary. Additionally, keeping track of these credits can become tedious.

Justifying the Chase Sapphire Preferred Card’s Annual Fee

Choosing a card with benefits that align naturally with your spending habits requires careful consideration. For me, the most practical choice is the Chase Sapphire Preferred card.

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Chase Sapphire Preferred® CardTerms Apply / Rates & Fees
Chase Sapphire Preferred® Card
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The rating for this card has been determined by our own industry experts who know the ins and outs of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.

A fantastic travel card with a great welcome offer, good benefits, and perks for a moderate annual fee.

Apply Now(at Chase's secure site)
Chase Sapphire Preferred® Card
A fantastic travel card with a great welcome offer, good benefits, and perks for a moderate annual fee.
Earn 60,000 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.
60,000 75,000 points
$1,500
$95
19.49% - 27.74% Variable
Upgraded Points credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Good to Excellent
Why We Like This Card

The Chase Sapphire Preferred® card is one of the best travel rewards cards on the market. Its bonus categories include travel, dining, online grocery purchases, and streaming services, which gives you the opportunity to earn lots of bonus points on these purchases.

Additionally, it offers flexible point redemption options, no foreign transaction fees, and excellent travel insurance coverage including primary car rental insurance. With benefits like these, it’s easy to see why this card is an excellent choice for any traveler.

Pros & Cons
Pros
  • 5x points on all travel booked via the Chase Travel portal
  • 3x points on dining purchases, online grocery purchases, and select streaming services
  • 2x points on all other travel worldwide
Cons
  • $95 annual fee
  • No elite benefits like airport lounge access or hotel elite status
Read Full Review
Card Highlights
  • Earn 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.
  • Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases
  • Earn up to $50 in statement credits each account anniversary year for hotel stays through Chase Travel℠
  • 10% anniversary points boost - each account anniversary you'll earn bonus points equal to 10% of your total purchases made the previous year.
  • Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
  • Complimentary DashPass which unlocks $0 delivery fees & lower service fees for a min. of one year when you activate by 12/31/27. Plus, a $10 promo each month on non-restaurant orders.
  • Member FDIC
Financial Snapshot
  • APR: 19.49% - 27.74% Variable
  • Foreign Transaction Fees: None
Rewards Center

Chase Ultimate Rewards

The card has a modest $95 annual fee, and it’s pretty easy to earn back with these 2 spending perks:

Maximizing these 2 benefits fully each year amounts to $120 in value, surpassing the $95 annual fee. The best part is that these benefits are for travel and grocery purchases, which I will make anyway. For DoorDash orders, I typically order a few items from the grocery store for delivery. The hotel credit through Chase Travel is easy to use. I used it on a hostel stay earlier this year, which made it nearly free.

The card also offers comprehensive travel insurance and valuable rewards. Most importantly, it delivers simplicity and value to consumers without much fluff. This is why I don’t plan to expand my credit card portfolio anytime soon.

Hot Tip:

Before you cancel a credit card, call the issuer to see if they will give you a retention offer to keep you as a cardholder. You could earn bonus miles or even get the annual fee waived for a year!

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Final Thoughts

I’m thoughtful about the benefits I’m receiving when I apply for a credit card. I’ve had years where I’ve spent thousands of dollars in annual fees and others where I’ve spent close to zero. The results vary drastically, but I’ve found my happy medium by focusing on the Chase Sapphire Preferred card.

Featured Image Credit: Upgraded Points

Frequently Asked Questions

How much is the Chase Sapphire Preferred card annual fee?

The Chase Sapphire Preferred card has a $95 annual fee.

Is it worth paying a credit card annual fee?

Paying a credit card annual fee can be worth it if the card’s rewards, perks, and benefits outweigh the fee’s cost for your spending habits and financial goals.

How can I avoid an annual fee on a credit card?

You can avoid an annual fee on a credit card by choosing a no-annual-fee card, negotiating with your issuer, or asking for the fee to be waived based on your usage and payment history.

What is an annual fee on a credit card?

An annual fee on a credit card is a yearly charge that the cardholder pays to use the card and access its benefits. Annual fees are typically charged on your first monthly billing statement.

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About Brett Holzhauer

Brett is a personal finance and travel junkie. Based out of Fort Lauderdale, he’s had over 100 credit cards and earned millions of credit card rewards. He learned the tricks of the trade from his mom, and has taken many steps forward. He wasn’t exposed to much travel as a kid, but now has a goal of reaching 100 countries in his life. In 2019, he sold all of his possessions to become a digital nomad, and he says it was one of the best decisions he ever made. He plans to do it again at some point in his life.

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Platinum Card® from American ExpressTerms Apply / Rates & Fees

Platinum Card® from American Express

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Platinum Card® from American Express

Welcome Offer: As High As 175,000 Points. Find Out Your Offer.

  • You may be eligible for as high as 175,000 Membership Rewards® points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Get more for your travels with 5X Membership Rewards® points on all flights and prepaid hotel bookings through American Express Travel®, including Fine Hotels + Resorts® and The Hotel Collection bookings. You earn 5X points on flights purchased directly from airlines or through American Express Travel® on up to $500,000 on these purchases per calendar year.
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  • More Value! With over 1,550 airport lounges - more than any other credit card company on the market* - enjoy the benefits of the Global Lounge Collection®, over $850 of annual value, with access to Centurion Lounges, 10 complimentary Delta Sky Club® visits when flying on an eligible Delta flight (subject to visit limitations), Priority Pass Select membership (enrollment required), and other select partner lounges. * As of 07/2025.
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  • More Value! $300 Digital Entertainment Credit: Get up to $25 in statement credits each month after you pay for eligible purchases with the Platinum Card® at participating partners. Enrollment required.
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  • $200 Airline Fee Credit: Select one qualifying airline and then receive up to $200 in statement credits per calendar year when incidental fees, such as checked bags and in-flight refreshments, are charged by the airline to the Platinum Card® Account*. American Express relies on airlines to submit the correct information on airline transactions to identify incidental fee purchases. If you do not see a credit for a qualifying incidental purchase on your eligible Card after 8 weeks, simply call the number on the back of your Card. Qualifying airlines are subject to change. See terms & conditions for more details.
  • Start your vacation sooner, and keep it going longer. When you book Fine Hotels + Resorts® through American Express Travel®, enjoy noon check-in upon arrival, when available, and guaranteed 4PM check-out.
  • New! $300 lululemon Credit: Enjoy up to $75 in statement credits each quarter when you use the Platinum Card® for eligible purchases at U.S. lululemon retail stores (excluding outlets) and lululemon.com. That’s up to $300 in statement credits each calendar year. Enrollment required.
  • $155 Walmart+ Credit: Receive a statement credit* for one monthly Walmart+ membership (subject to auto-renewal) after you pay for Walmart+ each month with the Platinum Card®.*Up to $12.95 plus applicable local sales tax. Plus Ups not eligible.
  • $100 Saks Credit: Get up to $100 in statement credits annually for purchases at Saks Fifth Avenue or saks.com on the Platinum Card®. That’s up to $50 in statement credits from January through June and up to $50 in statement credits from July through December. No minimum purchase required. Enrollment required.
  • Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
  • $895 annual fee.
  • Terms Apply.

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