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February 15, 2012


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I have never had a card with an annual fee, because I felt I couldn't charge enough to justify the increased rewards. Although I make (and spend) much more now, I continued to avoid cards with fees.

However, I am about to change that. It is important to look at the INCREMENTAL rewards compared to the fee. I can get 2% back on everything with no fee. If I can get 6% back on gas on a card with a fee, then I need to confirm that 4% of my annual gas purchases exceeds the fee.

I definitely disagree about the statement that "No amount of rewards and bonuses can make up for an annual fee." Like Mark said above if the increase in rewards is greater than the fee then it's usually something to look into.

I currently pay a $75 fee but I receive 6% back on groceries and 3% back on gas as well as 1% on everything else. The card I had before this had no annual fee but the rewards didn't come close to this and I increased my cash back by far more than the amount of the fee.

I agree with O-H-I-O. My Marriott Rewards card carries an annual fee, but as part of it I get a free one-night stay at a Category 1-5 property each year. Ignoring all other benefits the card provides me, this more than offsets the annual fee.

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