 TITLE: Should I Cancel a Credit Card With an Annual Fee? CONTENT: When It Makes Sense to Keep a Card With an Annual Fee\n-----------------------------------------------------\nThere's generally only one reason to pay a credit card's annual fee: The benefits you receive outweigh it.\nWhen you have a cash back credit card, pulling out a calculator can help. Look at your account records to determine how much cash back you earned during the past year and compare this against the card's annual fee.\nThe card might be worth keeping if you earned more cash back than you spent on the fee. But you should also calculate how much you'd earn with a cash back card that doesn't have an annual fee. It may make sense to switch to a card that has a less generous rewards rate but no fee.\nWith other types of rewards cards, and cards with cardholder benefits like airport lounge access, the calculation isn't so straightforward. Consider how often you use these perks and whether they're worth the cost—maybe shift your perspective and estimate the cost per use and see if that changes your mind.\nAnother thing to consider is whether you'll lose your rewards if you close an account. With co-branded cards, you'll keep the points or miles you earn in the partner's loyalty program. Closing your cash back card or one that allows you to earn rewards in the issuer's program might erase your rewards.\nRead the program's terms, as you may be able to transfer points to a different card or receive a grace period during which you can redeem the rewards after closing your account. END