Guides · Staying on top of it

Statement credits and annual fees: is your card paying for itself?

2 min read

A card with a large annual fee can still come out ahead, but only if you use the credits that justify it.

How credits work

Many premium cards include statement credits: money back when you use the card for certain purchases, such as travel, food delivery, rideshares or streaming. Some are annual; many are monthly or semi-annual and don't roll over if you miss them.

Value credits at what they're worth to you

A $10 monthly credit is worth $120 a year only if you'd spend that $10 anyway. If it nudges you into an order you wouldn't have placed, its real value is lower. Count each credit at what you'd realistically use.

A quick check

  • List every credit and perk on the card.
  • Write down what you actually used last year, in dollars.
  • Add the extra rewards you earned compared with a no-fee card.
  • Compare the total with the annual fee.

If the total is consistently below the fee, ask the issuer about a no-fee version of the card before canceling. Product changes can keep your account history intact.

Tip: monthly credits are the easiest to lose. A recurring reminder near the end of each month helps.

Tapd picks the best of your cards for every purchase, accounting for things like this automatically.

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This guide is general information, not financial advice. Card terms vary, so check your own card's terms.