No Debt Plan

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I’m a big fan of credit cards. That’s been hashed out here before. I love getting paid for my normal shopping habits. I love my AMEX Blue Cash rewards. I love how I am protected if the card is stolen. No one is emptying my bank account tonight; at least not because of my credit card (I wouldn’t get this protection from my debit card.)

Yet there is one thing that just baffles me: why pay an annual fee?

Credit card companies offer two different types of cards. The first requires you to pay to use the card on an annual basis. These fees can range from $29 to more than $99. Of course the second type of card lets you use it without charging an annual fee. There are a multitude of no annual fee cards available. So why pay an annual fee?

I haven’t heard a solid argument yet. So drop the annual fee card and pick up a credit card (to use wisely) with a great rewards program.

These are some cards I would recommend. They carry no annual fee and have a decent rewards program:

AMEX Blue Cash (My personal favorite because you can earn up to 5% cash back. I think cash is better than any of the other rewards because you can spend it on hotels, air fares, or whatever else you want.)

Discover (Very similar rewards to AMEX Blue Cash.)

AMEX Clear (Blue Cash has a better rewards program)

AMEX Blue Sky (if you prefer your rewards for flying)

Chase Free Cash (1% cash back)

So there are some options for you. Stop paying an annual fee and enjoy some rewards to boot. I know American Express also has some very low balance transfer fees in the range of 4.99% to 5.99%. Transfer some of your high credit card debt, pay it off, and then chalk up the rewards.