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I was wondering how you handle all the annual fees on all the credit cards. Do you cancel many cards, or do you feel that the benefits of the cards outweigh the $95 or so annual fee. For example, I have the Chase Freedom and Ink Plus, I would sign up for the Sapphire preferred for the sign up bonus, but after that, I don’t really need the card.
Deon – as you note, sometimes it only makes sense to get the card for the sign-up bonus. But in general we’ll keep cards at least until the next annual fee is due, just to help lengthen our Average Age of Account (AAA), which is a factor in your credit score.
Beyond that, most of us will keep the No Annual Fee cards like Freedom, Citi Double Cash and Discover because, why not? It helps lengthen our AAA and doesn’t cost us.
For other cards it depends on your usage. Personally I dine out at least once a day so the CSP is very valuable to me since it gets 2x points at restaurants – though of course I use the Freedom during the quarter where it earns 5x!
For me I put enough spending on my cash back cards to offset any of the annual fees that I pay.
Lucky wrote this post back in August regarding how to justify annual fees: [URL]http://onemileatatime.boardingarea.com/2015/08/10/how-to-justify-a-credit-card-with-an-annual-fee/[/URL]
Thank you very much.