Whats in My Wallet & Sock Drawer

The Frequent Miler had an article about which annual fee cards he is planning on keeping. It got me thinking about my own credit cards.

Quite a few are up for their annual fee and its time to make some decisions. Do I keep the credit card and pay the annual fee or singing “na na na, hey hey good-bye,” to it. The decision is not easy, because I deduct credit card annual fees from my travel budget. They are an expense to my travel hobby/addiction. Keep to many and the annual fees can add up quickly.

Here is a list of all the credit cards in my possession and my thinking at the moment of keeping or canceling:

Keeping:

Banana Republic (no annual fee)

Hilton AMEX (no annual fee)

US Airways World Mastercard (no annual fee – oldest credit line)

Capitol One Card (no annual fee)

Chase Hyatt ($79 annual fee – free night on anniversary)

Chase Priority Club ($49 annual fee – free night on anniversary)

US Bank Club Carlson ($75 annual fee - 40,000 point anniversary bonus)

Undecided:

Chase Sapphire ($95 – 7% dividend every January – last years’s: 1500 points)

Chase Southwest – Personal ($99 annual fee, 6,000 miles anniversary bonus)

Chase Southwest – Business ($99 annual fee, 6,000 miles anniversary bonus)

Alaska Airlines ($75 annual fee, $99 companion pass each anniversary)

US Airways Premier World Mastercard ($89 annual fee, - 10,000 miles anniversary bonus)

Bye Bye

Chase British Airways ($99 annual fee)

Chase United Airways ($95 annual fee)

Delta AMEX ($95 annual fee)

Citi American Airlines ($95 annual fee)

Last weekend, I wrote that one of the keys to a great credit card is a bonus on the anniversary especially if there is an annual fee. As reflected above, those credit cards with annual fees that I am keeping offer me that anniversary bonus. I have great credit, use my credit card frequently and always pay my bills on time, I should be reward for keeping their credit in my rotation. Yes, that sounds spoiled, but every time I swipe their card, they earn money. And I swipe alot!

As stated above, one of the main reasons I let cards go is the hit to my travel budget from the annual fees. If I kept all the cards above, the annual fees would be over $1,000 or 1/3 of my travel budget. Wasting a 1/3 of my travel budget on credit card annual fee is crazy.

The decision to keep or cancel a credit card is an important part of the game. Annual fees are not going away anytime soon. To succeed in this game, one must way the cost associated with having a credit card vs. the benefits that you receive from it.

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