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Do cards with annual fees make sense?

As you’re considering your credit card options, you may wonder about the value of paying annual fees for a credit card. Are these cards worth the extra dollars you pay just to hold the card? It depends.

Credit cards without an annual fee offer basic benefits, such as 24/7 customer service and purchase protection. They make sense if you don’t intend to use the card often, if you’re just building credit, or if you simply don’t spend enough on your credit card to earn rewards that break even cost-wise with the annual fee amount.

However, cards that include the FlexRewards1 program and additional “lifestyle” benefits can offer tremendous value and money-saving potential. In addition to rewards, some cards offer benefits for travel such as car rental insuranceand price protection3 that ensures you pay the lowest price. All of our credit cards come with exceptional global customer service, security and fraud protection, and extended warranty insurance.3

When deciding on a card with an annual fee, start by reviewing your spending habits to understand where you make major purchases. For example, if the majority of your purchases are made by credit card, consider the World Mastercard®, where you'll earn 3 points for every dollar spent on groceries, 2 points for every dollar spent on dining and entertainment, and 1 point for every dollar spent on all other purchases. Finally, it’s important to pay attention to rebates and specials offered with credit cards. These perks definitely offset the cost of an annual fee, and provide additional value. 

With our SCU Collabria® credit cards, you’re sure to find a card that will reward your lifestyle. Learn more about all of our credit cards here.

®Collabria trademark is Collabria Financial Services’ property. ®The Collabria Mastercard is issued by Collabria Financial Services Inc. pursuant to a license from Mastercard International Incorporated. Mastercard is a registered trademark and the circles design is a trademark of Mastercard International Incorporated.

1Eligibility for rewards and/or account credit is subject to the terms and conditions of the FlexRewards program. For full terms and conditions, visit

2Insurance coverage is underwritten by Desjardins Financial Security Life Assurance Company. This document is provided for information purposes only. For details of the coverage, refer to the insurance contract or insurance certificate available online at Some conditions and restrictions apply. Insurance coverage is subject to change.

3Insurance coverage is underwritten by American Bankers Insurance Company of Florida (ABIC). ABIC, its subsidiaries and affiliates carry on business in Canada under the name of Assurant Solutions®. Assurant Solutions is a registered trademark of Assurant, Inc. Details of insurance coverage, including definitions, benefits, limitations and exclusions, are in the Certificate of Insurance. The Certificate of Insurance is available online at Insurance coverage is subject to change.

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