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Opinions on credit cards with annual fees? (self.personalfinancecanada)

submitted 2 years ago by sweca to c/personalfinancecanada

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I saw this card (https://www.scotiabank.com/ca/en/personal/credit-cards/visa/momentum-infinite-card.html) offered by Scotiabank that offers 10% cash back on purchases within the first 3 mo up to $2k, and 4% regularly on groceries and recurring payments. From first glance, it looks really good, but at the same time, there's a $120 annual fee. Although, the first year has no fee.

I wonder if I could use it for the first year and then close or downgrade it afterward. Would my credit score take a substantial hit?

What's your general opinion on cards with annual fees? What benefits would it need for you to consider one?

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[–] RandomDude 1 points 2 years ago

It all depends on how much you spend, and on what categories, and what categories the card gives you rewards back in. If you have a card with a $100 annual fee let's say, but you earn $500 in rewards (points, travel, cashback etc.), then you would have made back 5x the amount of the annual fee and is totally worth it. As someone else has mentioned, you should take a look at churning. Whether you want to churn or not, they have the best information on whether or not a card with worth it, and which ones are considered the best.