If you’re considering getting a credit card, you might be inundated with offers claiming no annual fees. However, many credit cards come with annual fees, sometimes as high as ₹12,000. But is it worth it? Let’s break it down.
Understanding Annual Fees
While some credit cards may seem “free,” they often charge annual fees after the first year. These fees can vary significantly, and it’s essential to assess whether the benefits you receive outweigh the costs.
Justifying the Fees
To determine if an annual fee is justified, consider the monetary benefits you can earn from the card. Here are a few examples:
1. ICICI Bank Emeralde Credit Card
- Joining Fee: ₹12,000
- Annual Fee: ₹12,000
- Benefits: Unlimited complimentary international lounge access, no cancellation charges on domestic travel, complimentary golf rounds.
- Justification: If you save around ₹50,000 on golf and hotel cancellations, the fee is easily justified.
2. ICICI Bank Coral Credit Card
- Joining Fee: ₹500
- Annual Fee: ₹500
- Benefits: One railway and airport lounge access every quarter.
- Justification: For frequent travelers, the ability to access lounges makes this small fee worthwhile.
3. ICICI Bank Rubyx Credit Card
- Joining Fee: ₹3,000
- Annual Fee: ₹2,000
- Benefits: 25% discount on movie tickets twice a month.
- Justification: If you regularly go to the movies, the savings can outweigh the annual fee.
The key to deciding whether to keep a credit card with an annual fee is to evaluate the benefits against the costs. If the rewards and savings exceed or match the fees, it makes sense to retain the card. Always align your card choice with your spending habits and preferences for maximum benefit!