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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 7 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.

BEST FIRST TRAVEL CARD
Chase Sapphire Preferred® CardTerms Apply / Rates & Fees
Chase Sapphire Preferred® Card

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 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.
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 bonus categories include travel, dining, online grocery purchases (excluding Walmart, Target, and wholesale clubs), gas, EV charging, vacation home rentals with top brands, and streaming services.

It offers flexible point redemption options, no foreign transaction fees, and strong travel insurance coverage, including primary car rental insurance. If you travel a few times a year and spend on dining, the card is likely to be a good choice, but it’s hard to justify if you don’t dine out or travel often.

Pros & Cons
Pros
  • 5x points on all travel booked via Chase Travel
  • 3x points on dining purchases, online grocery purchases (excluding Walmart, Target, and wholesale clubs), gas, EV charging, vacation home rentals with top brands (such as Airbnb and Vrbo), and select streaming services
  • 2x points on all other travel worldwide
Cons
  • $95 annual fee
  • Subject to Chase’s 5/24 application restrictions
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, 3x on vacation homes at top brands, 3x on gas & EV charging, 3x on top streaming services and online groceries (excluding Walmart, Target, and wholesale clubs), 2x on all other travel purchases, 1x on all other purchases.
  • Earn up to $100 in statement credits each account anniversary year for hotel stays through Chase Travel.
  • Count on Trip Cancellation/Interruption Insurance, Auto Rental Coverage, Emergency Evacuation and Transportation, and more.
  • Get a year of complimentary Apple TV when activated by December 31, 2026 - a value of $180.
  • Complimentary DashPass membership, a $120 value for 12 months. Enjoy $0 delivery fees and reduced service fees on eligible DoorDash orders, plus exclusive Chase savings on grocery, everyday essentials, and more. Activate by 12/31/29.
  • Receive one statement credit of up to $120 every four years as reimbursement for the application fee charged to your card for a Global Entry, TSA Precheck® or NEXUS application.
  • Transfer points to leading airline and hotel loyalty programs.
  • 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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