There is a long-held myth that consumers should never pay an annual fee for a credit card if they can avoid it. Free, of course, is often the best option for many people. If you are equipped with strong money management skills, however, you can make sure you get the value of that fee back by taking advantage of the reward points and perks offered by your paid-for credit card account.
Various credit cards offer different perks. Some may provide cash back, gift cards or airline miles. Cash back cards might reward shoppers with different rates depending on where they've shopped, while some offer a set percentage. The problem is that rewards often change on a quarterly basis. You need to regularly review the different promoted categories each quarter, so that you can plan your spending around it. To combat this, some people might spend more each month to earn more rewards. If you don't clear the full balance each month, however, interest will quickly build up on the debt, undermining any benefits the card may have.
Airline cards can be a good option for frequent flyers. Not only will the earned miles offer discounted trips or flights on a regular basis, but other perks, such as priority boarding and free checked luggage, are often included too.
One of the most important things to remember for paid credit card accounts is that any perks must be well managed if they are to offer savings. It's easy to pick an account and then forget to take advantage of all the benefits that attracted you in the first place. If you are well organized and manage your finances well, paying an annual fee for a credit card could offer more rewards than costs.
If you want more credit, check out MoneyTips' list of credit card offers.