Should I pay an annual fee for a credit card?

Only if the math works at YOUR utilization, not the issuer's stated max. Most premium cardholders capture under 60% of stated credit value — at that capture rate, many AFs are negative-EV.

Run the math honestly. List the annual benefits (statement credits, anniversary points, free-night certs, lounge access). Discount each to its realistic capture rate for YOUR life (do you eat at Cheesecake Factory? do you fly through airports with Centurion lounges? will you actually use a free-night cert within 12 months?). Sum the realistic value. Subtract the AF. If positive, the card pays; if negative, downgrade or close.

Reviewed by the ClearValue Editorial Team · Last updated 6/29/2026