07 Jan, 2014
Savvy Tips

Are Credit Card Fees Really That Bad?

After all, who likes paying annual fees for a card that has interest rates as high as 28.9%? Here are five reasons why opting for credit cards with fees can help you be wallet-savvy

1. Travel Insurance

If you travel at least once a year, even individually, you must have a card that gives you travel insurance coverage. An all-inclusive insurance for a young adult can easily cost over $75 for a one week trip. If you are travelling with a partner or dependant, you can save big by booking your trip with a card that has insurance. If you are over the age of 60, your travel insurance package can cost over $350 per trip, per person. All this makes the annual card fee of $120 look so much more appealing. Most premium fee cards that offer travel insurance offer the following insurance protections in various converge:

  • Accidental Carrier Travel Insurance: lump sum payout for accidental loss of life during an accident or payout for lost limbs or other disabilities.
  • Emergency Medical Insurance: just as the name implies, in case of health emergency while overseas, you have peace of mind that you will not need to sell your house to cover the medical bill.
  • Trip Interruption and Cancellation: life is unpredictable; the trip you planned 6 months in advance can get cancelled at the last minute due to an unforeseen illness. This insurance will reimburse your trip charges so that you can book again in the future
  • Lost Luggage: in case your luggage gets lost when you travel, you're covered.  
  • Hotel Burglary: as safe as we think hotels are, personal items can get stolen and rooms can get burglarized. Knowing your belongings are safe and insured in case of a burglary offers peace of mind.
  • Car Rental Insurance: most of us who travel and rent cars often end up paying a fortune to have mandatory insurance for the car; the right credit card will help you save.


2. Price Protection

Depending on your credit card, some offer price protection. Imagine you buy a big screen TV and it goes on sale 45 days later. You go to the store and they tell you that your 30 days “grace” period is over and there is nothing the store can do. Well, a good premium card has price protection policy to help you get the price difference for free. With certain big-ticket purchases, this can really add up!

 3. Extended Warranty

Many credit cards with annual fees offer up to double the extended warranty on your purchases. Many stores are selling extend warranties for a significant premiums to bring that extra peace of mind in case something goes wrong with your new big purchase. A good credit card is your ticket for free double warranty. One or more bigger purchase a year, and you have more than covered the annual fee of your card.

4. Rewards

Many no fee cards offer rewards as well, so why chose a fee based card for the same catalogue? As you have guessed, the fee based cards allow you to collect more rewards per each dollar you charge to the card. This means you can redeem your points faster for that dream vacation!

5. Perks

Some cards offer free roadside assistance, additional discounts at various stores, car rental locations, and free airport access lounges. You can save big by having the right card.

Many premium cards offer most, if not all of the above advantages. Just image the savings you can enjoy with built-in travel insurance, better rewards, extended warranties and much more. Let Wallet Savvy help you select the best card to help you maximize your bottom line.

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