Why A No Annual Fee Airline Credit Card May Not Be Best

Most people will advise against getting a credit card with an annual fee. They would typically offer this type of advice just based on the fact that there are a lot of no annual fee credit cards. The fact that there are a number of no annual fee airline miles credit cards does not mean that this is always sound advice. In some cases it makes sense to pay that annual fee and I will explain when and why below.

If You are a Frequent Flier

Many business owners, sales managers, and others fly frequently. In order to save on travel it makes a lot of sense for these folks to take out an airline miles credit card with the airline that they fly most frequently with. With these programs they will earn a lot of miles which they can use for free tickets and seat upgrades. The rewards with frequent flyer programs could as much as 7% versus cash back rewards programs which offer 1-2%. This is a big difference!

The fact that these cards have an annual fee should not deter you if you are a frequent flyer. The extra perks like access to airport lounges, free or discounted companion ticket and more all make the annual fee that you have to pay almost negligible.

No-Preset Spending Limits

This is one feature that you will not get with a card that has no annual fee. If you want your airline miles credit cards to include a no-preset spending limit then be prepared to pay an annual fee. This feature makes it even more possible to earn more miles on your credit card. Take note that you will have to develop a good relationship with your credit card provider and whenever you want to charge a huge amount to the card all you will need to do is give them a call to let them know beforehand. From the viewpoint of the credit bureau the credit limit will be reported as the largest amount ever charged to the credit card.

No-preset limits are ideal if you need access to a large credit line from time to time. The convenience of this limitless credit line makes paying the annual fee worth the while.

Access To Concierge and Special Events

Even though there might be some no annual fee credit cards that offer concierge service they are usually very limiting. Business owners and other executives make good use of concierge services and don't not mind the paying the annual fees on cards that provide a good one.

In addition to this service you will get access to a number of live events in the arts or at specific theaters. When you entertain for business or just like attending these events to unwind these extra features can prove to be beneficial.

Lower Rates of Interests

If you are not one to pay off your credit card balance before the grace period then you should not get a card with no annual fees. No annual fee credit cards are famous for their high rates of interest and when you add that to the fact that reward cards already come with high interest rates to begin with you are looking at a potentially disastrous situation. Always make sure that the benefits that you get from the card are a lot more than what you pay in fees.

So now that you know that sometimes it makes sense to get an airline credit card with an annual fee do not be so willing to dismiss them when you begin searching for suitable cards. Do your research and choose the card that best suits your needs, even if it means that you have to pay an annual fee.


Read More About Airline Miles Credit Cards