Why I Dislike Membership or Credit Cards With Annual Fees

Today I received in the mail our Costco card rebate of $71.61. It is not a great deal over a year but the gas is less expensive so we fill up there and some of the stuff like toilet paper and cat food are really good deals so we buy from Costco.

At the same time we receive the reward though we are told that our membership is due and will be automatically billed on our credit card September 1st. That amount comes to $120 for the year.

Listen I am not complaining but they mention that the $71.61 cannot go to pay off some of the membership fee on our credit card. We have to spend it in the store.

Shouldn’t you have a choice as to whether you want to pay down the membership fee or like they want you to do and spend it in the store. I know shopping at Costco to redeem your reward you have to spend that amount and not a penny less or they will tell you they cannot give change on a reward coupon.

Maybe I am being picky but why do credit and club member cards make you pay their membership fee separately instead of applying your cash reward to it? Well it is obvious of course they do this to cover the cost of their reward coupon to you.

Some credit cards have that $120 annual fee so you can have flight insurance or air miles toward your next flight. But I do not fly on a weekly basis for anything to add up.  Unless you are a traveling salesperson most people go one year to the next without flying then that annual fee pops up again. I had one of those cards one time and discontinued it.

If you have a credit card like that many times the interest rate might be a little higher so you better pay off the card monthly or else they will soon get back any savings you might have had taking that cheap flight on that expensive vacation.

Cards with fees are out. I will keep the Costco card though. Cash is better compared to points to take a flight  I may never take.