Nothing in the Credit CARD Act of 2009 limits annual fees, so credit issuers are already beginning to rethink their annual fee structures in an effort to fight eroding profit margins.
In fact, a new strategy is emerging that provides consumers with the option to choose a better rewards program for a higher fee or settle for a lesser program with no annual fee or a minor fee. Which fee structure to choose can often be a confusing decision for consumers to make.
So, if you're searching for a new credit card or reevaluating your current card, be sure to do the math and determine whether the annual fee is actually worth it to you. Take a close look at your average monthly spend, estimate the amount of rewards you will accumulate (try to place a dollar amount to the number), and figure out if the rewards will eventually outweigh the annual fee. If it appears to be a wash or too close to call, it may be in your interest to just stick with a no annual fee credit card instead.
