If you are not a heavy spender, you should avoid credit cards with an annual fee. A credit card with an annual fee is worth the money only if you get enough reward from your spending to offset the fee. But you may have to check if you have spent enough. In the common case, the benefit you get from the card with an annual fee is less than simply using no annual fee credit cards. For example, with a credit card that has $120 annual fee, let’s say you earn $240 cash back for the year, then your net reward is only $120. It is an achievable amount with no annual fee cashback credit card with the same amount of spending. For people who have multiple cards in hand. It is hard for them to keep track of spending on each credit card to balance their gain.  No annual fee credit cards offer hassle-free long-term value than those credit cards that charge a fee. You can benefit from a no-annual-fee credit card regardless of your spending amount. And from the above perks we mentioned, despite the lack of an annual fee, many of them offer significant cashback rewards and perks. So why do you pay for packages for things that you are never going to use? Moreover, no annual fee card will help you spend less on needless stuff to fulfill the threshold of breakeven.  No annual fee credit cards don’t cost anything to keep in your wallet year after year, then why not have one?