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Five credit card perks that make an annual fee worthwhile

 
Published Jan. 16, 2015

With so many credit cards on the market, it can be time-consuming to search for the right one. Most people will rule out credit cards with annual fees. After all, why pay to be able to spend your own money?

There are actually some annual fee credit cards whose benefits are worth the expense. Paying an annual fee for your credit card can open the door to better spending power and rewards if used correctly.

Here are five credit card perks that outweigh the cost of paying an annual fee.

CONCIERGE SERVICES: You'll often find these perks on travel rewards products, like the World Elite MasterCard or Visa Signature cards. Concierge services can be used for a multitude of things. Here are just a few ideas of how you can use a concierge to your advantage:

• They can provide hotel recommendations for locations within a certain price range.

• They can help arrange travel plans and book tickets.

• They can help score tickets to sold-out events and games.

• They can offer gift recommendations within a certain budget.

RETURN PROTECTION: It's a common occurrence to order something online and wind up hating it, and it can be a pain to make returns. Many online companies refuse to refund your money, or they'll charge fees to return an item. That's why it's smart to purchase big-ticket items with a credit card that offers return protection.

PRICE PROTECTION: It is frustrating to buy something only to see it priced for less a few weeks later, especially on big-ticket items such as computers, furniture and jewelry, where the difference can be substantial. Luckily, many credit cards offer the benefit of price protection, so if the price changes on an item — usually within 90 days of purchase — the credit card company will refund the difference.

FREE HOTEL STAYS: A night at a hotel can cost $150 or more, even at mid-tier hotel chains. A number of travel cards reward consumers with a free night's stay at a hotel. The Marriott Rewards card through Visa Signature offers one free night in a category 1-4 hotel upon account approval. The card also awards customers 50,000 bonus points when they spend $1,000 in their first three months, which translates into as many as six more free nights (depending on the hotel).

The Club Carlson Premier Rewards card through Visa Signature offers nine free nights at a Carlson hotel when you sign up and spend $2,500 within the first 90 days. You also earn 40,000 bonus points each year that you renew your card.

FREE CREDIT SCORE: According to USA Today, fewer than 20 percent of Americans check their credit report yearly. Considering how often credit fraud occurs, that is alarming. Using a credit card that gives free credit scores throughout the year can help you better monitor your numbers. It is easy to catch a problem if the numbers change too drastically. It can also be good to know your score before you sign up for another line of credit, such as when you buy a car.

Ashley Eneriz is a personal finance columnist for GOBankingRates.com.