Is it Worth Paying an Annual Fee for a Credit Card?

Sometimes yes—but only if the value you get back is clearly greater than the fee you’re paying.

An annual fee can be worth it when:

• You earn more in rewards, perks, and protection than the fee costs

• You use the travel, insurance, or premium benefits regularly

• You always pay your balance in full, so interest doesn’t erase the value

If you don’t spend much, rarely travel, or sometimes carry a balance, a no fee or low fee setup will usually be better.

A Strong Alternative: KOHO Everything

If you like rewards and perks, KOHO Everything gives you everyday value while you spend your own money, not borrowed credit:

• Grow your savings with 3.5% interest, one of the highest rates in Canada

• Earn a 2% cash back rate on groceries, eating, drinking, and transportation and 0.5% cash back on everything else

• There are no foreign exchange fees, so you save on international purchases and travel

• Subscribe to Credit Building for $5, it's a secure, affordable way to build your credit history

• Unlimited transactions and free e-transfers

• No minimum balance required, ever

When an Annual Fee Might Be Worth It

Paying an annual fee can make sense if:

• You spend enough in bonus categories (e.g., groceries, gas, travel) to easily earn back more than the fee

• You use travel perks like lounge access, free checked bags, or travel credits every year

• You value strong insurance coverage (trip cancellation, rental car insurance, purchase protection, etc.)

If the math shows you’re getting significantly more than you pay—and you’re disciplined with payments.

When it’s Probably Not Worth it

An annual fee usually isn’t worth it if:

• You don’t spend enough to earn back the fee in rewards

• You rarely travel, so you don’t use the premium perks

• You sometimes carry a balance, because interest charges eat more than any rewards

• You just want a simple, everyday card for regular purchases