Is a lower rate worth the annual fee?

This tool shows the tradeoff in holding a no-annual fee card with a higher interest rate versus an annual fee card with a lower rate. You may also enter any introductory "teaser" rates and the period offered.

Your decision depends, in large part, on your card use. If you pay off your balances promptly, you don't incur any card interest expense. There's little reason to pay an annual fee for the privilege of paying the card company promptly.

If you tend to carry a card balance, you should aim to minimize interest expenses by using a low-interest rate card. You may have to pay an annual fee in exchange for the low rate but may save more in interest expense during the year than the cost of the annual fee.


Advertiser Disclosure: The credit card offers that appear on the website are from credit card companies which myFICO receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). The site does not include all credit card companies or all available credit card offers.