Since the Credit Card Act was signed sealed and ready to be put in place since February 2010, the credit card industry had been fighting back. Although we have talked about credit and credit score, and how it is a part of our lives, we will not begin bashing anybody for wanting to have it, if it is the first you are applying for one. As part of the fight back, more credit card issuers are adding or increasing annual fees. But there are still plenty of no-fee options, so before you sign up for a new card with an annual fee, make sure the benefits are worth the costs.

Prompted by the Credit CARD Act and the new Federal Reserve Board (America) regulations that limit the types of fees that credit card issuers can enforce, credit card companies are looking to increase revenues by adding or raising annual and other fees.

If you are in the search for a new credit card, or even adding one other card in the wallet, you should consider its fee and at what the card offers for that fee. Things to look for are things such as offering travel protection or travel insurance, or some sort of rewards points. Another thing that you may want to look for is getting discounts from airlines, hotels or stores.

Here are 6 key things to think about when and whether it makes sense to pay an annual fee:

Doing the Research To Get The Best Deal

 If you’re looking for a new card and considering paying an annual fee, your due attentiveness should include comparing rewards cards that have a fee with those that don’t and calling customer service to get more information if there is something you don’t understand. Many credit cards don’t offer a lot of specific information about redeeming rewards on their websites and in mailings, so make sure you know what you’re getting into before you get a new card.

Hidden fees

 What seems an attractive deal on a rewards card may not be is if you need to pay an extra fee from a rewards card service provider to claim your rewards. Some airline miles cards have this clause where the airline might charge $150 to redeem your miles. If you’re paying an annual fee in addition to a fee to claim your miles, you might be better off just buying a plane ticket entirely.

Really Exceptional Rewards Benefits

 If your credit card offers lots of superior rewards, better payment options and a lower interest rate maybe that’s worth a fee for many consumers and entrepreneurs. Highly desirable rewards and perks include flexible payment options, lower interest rates, additional extended warranty coverage, concierge service and loss protection services for canceled trips or lost luggage, and the ability to avoid specific spending limits. Having all these extras built into the credit card might be justifiable.

Making Use Of The Rewards or Benefits Offered

 If you’re earning rewards but not using them, paying an annual fee is a waste of money. Too many consumers don’t take advantage of their rewards programs. The number of rewards cards transactions we’re seeing doesn’t compare with the number of people reaping the rewards. In short, people aren’t using all the rewards they have. You really should look and think about how much the rewards or services you are being offered is actually worth to you either in your personal or business life and if you will use them. The last thing you should consider that if the rewards do fit and you’ll use them, what’s the cost outright purchase those things versus getting them through a reward.

 Ease Of Claiming The Rewards And The Use

So from the first 3 items to think about in your search for a credit card that has an annual fee, we hope that we have put a good clear light of this trip. But alas the journey of finding a rewards credit card is not over. The more hoops you have to jump through to claim your rewards, the less valuable they are. Here’s a strong suggestion to act upon. You want an easy-to-find link on the card issuer’s website to the rewards site. Once you are on the rewards page, it should be crystal clear exactly how many points you have and what you can get for those points. If you need to talk to a customer services rep, the number should be easy to find, you should be able to get right through to a real person and get understandable responses to your questions.

Cash Back Credit Cards

Credit cards that offer cash back take a lot of work, as the reward categories rapidly change. Some airline miles cards may include blackout dates (dates that you cannot book your trip), be specific to certain airlines, have a maximum amount of rewards that you can accumulate or run out of time to use. Other cards give cash back but will only cut you a check once you hit a certain number of points, so if you don’t spend enough money to get the cash, you don’t get anything. As an example: 25,000 points of accumulated rewards points can get a $250 cash back. Here’s the thing; you will not get a penny until you get those 25,000 points and any number of points less than that is essentially worthless. To make matters worse, the points must be added before a certain date (and even time).

If you already have a rewards card, you should check periodically to make sure the benefits you originally got the card for still exist. Credit card companies generally are not in the business to advertise what they’re taking away from you. It is a good idea to contact your credit card company to check up on this. Every year, you can make a phone call to your credit card company and ask them to waive the annual fee every year. This is not a guarantee that your annual fee will be waived, but it is worth a try. You have nothing to lose. The worst case scenario is that they will say no.

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