Do you pay the yearly fees?
 

I'm still new and confused by the whole credit card churnning process.

I have 1 CC, a delta Amex that came with 70K miles. I'm about to sign up for a 50K chase united card and maybe a usair card if I find a good deal.

At the end of year one, what do you do? Close the account? Pay the yearly fee? Downgrade to a free version of the card that is not airline branded?

How do I then become elgible to do this again in a year or so?

At the end of the year I evaluate how much spend I put on the card, the benefits of the card, and decide if paying the AF is worth it to me.

If I decide the AF is not worth it, I'll call them up, say I'm thinking about canceling and explain why. Sometimes it will get you miles/fee waiver/something else. Other times you downgrade or cancel.

How long you have to wait varies from card to card and you should read the appropriate T&C of the card.

I pay the yearly fees for:

Chase Marriott card (one free night per year)
Chase IHG card (one free night per year)
Chase Hyatt card (one free night per year)
American Express Platinum (lounge access, $200 airline credit)

I'm considering paying the annual fee for:

Citi Hilton Reserve card (Hilton Gold status: free internet and breakfast)
(unless it's churnable).

For other cards, I tend to cancel and reopen.

Ditto on the Marriott and IHG.

I already have Hilton Gold so my 2 Hilton cards are the no annual fee cards.

It's a cost-benefit decision on each card. How much is keeping the card worth?

For me, I pay US Air (10K renewal bonus, $89 fee) and plan on getting Chase IHG soon, for which I will pay the fee annually as well in years following the first (1 free night, $49 fee).

Your post is a little vague, but if Delta Gold is your ONLY card, it is probably not a good idea to cancel it. Many cards have a no annual fee version (for example, Chase United does), so you can downgrade and still keep the credit history. Once your credit profile is more robust, closing a card has little effect.

Do you pay the yearly fees?
 

I try to avoid fee cards unless I pre-determine I'm ok with the fee. I always forget to cancel.

I pay the Chade Marriott and Ink fees and a few Amex that I like.

AMEX BCP.....6x points for groceries, capped at $6k = $360. You bet I pay $75 a year for that card.

I'll say what everyone else has been saying: do a cost/benefit analysis for each card.

I pay a fee on:

1) IHG (free night for $49....even at ICs!)
2) Chase Hyatt (higher fee, $75, but far outweighs the cost of a Cat. 4 hotel room).
3) Barclay USAir ($89 for another 10k, why not? Prob cancel shortly thereafter)

Won't pay a fee on (either call and cancel or ask for a waiver)

1) My Citi cards (AAs)
2) Hilton Amex (don't care for the Hilton brand enough, and never been a fan of a free breakfast perk)

Debating (Everyday spending cards):
1) SPG Amex (Small fee, valuable points...probably call for a waiver, if possible)
2) Chase CSP (Moderate fee, valuable points...)

I spend enough on gas and groceries with the Amex Blue Cash Preferred to cover the annual fee and my Platinum's annual fee. The only other fee card I have is CSP and that card is definitely worth keeping for me, so the $95 fee is ok.

I have and will keep/pay a fee on:
- Chase Sapphire Preferred
- Marriott Premier Rewards

I plan on getting and would likely be willing to pay the fee on:
- AmEx Premier Rewards Gold Card
- Hyatt Card
- Club Carlson Premier Rewards Card

I have the fee version of the BarclayCard Arrival, but will most likely downgrade it to the no fee version before the year's up. As you can see, I really only value the best rewards cards + programs and hotel cards with free nights high enough to justify the fee.

Thanks. I do have a normal capital one venture card that has always been my go to card until I decided to try to gain airline points (and soon maybe hotel points). I'm going to downgrade the Delta Amex to Amex Blue which is few free. I'm also adding the barclays usair and the chase united in the near future, then I'll try and decide on a hotel card. I see the IHG is popular, best hotel card? Do most make you book multiple nights to redeem the free night?

If you have a spouse or SO, you can churn this card 1 year after cancelling and get a signup bonus of $150 to 250. and get that $360 twice per card (cap is per calendar year). You cancel, SO gets it and adds you as an AU, then trade off after 12 months. Easy $800-900 per year.

^ not quite following..$75 fee is up front....I guess you are assuming we would spend $12k a year in groceries?

"get that $360 twice per card"

not sure what you mean here...AU doesn't get an additional $6k spending on groceries, it's $6k cap per account. What am I missing?

I pay the fee on two cards:

Chase IHG
Club Carlson Business Visa (still in first year though but 85K points for $60 was worth it)


I have an old Citi AA that has a yearly fee but I call in every year to get it waived.

Rest I close before the fee is due.

True, but I don't count it as quite $360. Considering just groceries, you can get the BCE for free, and that gives back $180, so you are paying $75 for an additional $180.

And a 5x Citi Ty/TYP card would give you $300 on the first $6K (and keep on giving after that) which then beats the BCP by $15 after the annual fee.