Form 13 Penfed: Fill & Download for Free

The trick is to spend less than you make so that the extra money can go toward debt. Actually, the trick of life is to spend less than you make, no matter what your situation. In this case, often low income people are already working more than 1 job, but there are a couple of options, depending on circumstances:Immediately, stop using the credit card(s). Credit is double trap. First, you’re spending money you don’t have. Second, you’re paying interest on the purchase, so something that costs $200 is going to cost you hundreds more in interest charges. Cut up the credit card or put it in a Ziploc bag, fill the bag 3/4 of the way with water and freeze it. It’s harder to impulsively use your card if you have to wait for it to thaw. If you don’t have the cash, don’t buy it. Check to see if any subscriptions (iTunes, Hulu, etc.) are going to the card and switch to your debit card.Pay more than the minimum payment, always. The minimum payment is designed by banks and finance companies to keep you hooked/trapped on the debt. Look at your credit card statement (paper or online). By law, credit companies must show you how much you’ll eventually owe if you pay only the minimum and how long it will take to pay it off.EXAMPLE: A $2,000 credit balance with an 18% annual rate, with a minimum payment of 2% of the balance, or $10, whichever is greater, would take 370 months or just over 30 years to pay off. 30 years!There are some good calculators out there, which let you see how long it will take to pay off your balance at your card’s interest rate. You can also see how much you’ll save by paying more than the minimum.Cards that earn points/miles or pay cash back have higher interest rates. If you have one, switch to a basic card with a lower rate.Call your bank and ask them to reduce your interest rate. If you are current on your payments, they may be willing to reduce your rate. If you don’t ask, the answer is no.No late payments! Set up automatic payments online, either at the credit issuer’s website or if you use online banking, set up auto payments. The last thing you want is to make your situation worse by having a late fee, which can be $35.00 or more for the first late payment on top of the interest you’re already paying. (I’m not plugging, but Citi offers the Simplicity card which has no late fees). PenFed Visa card also has no late fees.BUDGETING:Spend less than you make. Cut any extras (if there are any). Car pool to work or take the bus, don’t buy meals out, cook fresh at home rather than buying packaged food - pre-made food is more expensive, buy store brands rather than name brands (Safeway brand spaghetti sauce instead of Ragu), turn off the lights, cut cable, do not go to Starbucks. Stop drinking soda, drink water instead. I switched my cellphone provider from AT&T to Consumer Cellular and saved $93.00 a month. Internet/cable and phone providers don’t want to lose you as a customer. Call and ask for a reduced rate or you’ll switch. Are you paying to rent your internet modem, usually $5–10 a month? Buy your own (with cash) and cancel the rental. Search online for more ideas about how to cut your expenses. Be willing to go without until the debt is gone.Make more money to cover the debt. Take on a second or third job. Start a side gig (child care, house cleaning, car repair, tutoring, sewing, cut hair, do manicures, sell items on eBay or Etsy). Capitalize on any talents you have to bring in income. Again, this can be difficult if you are already working more than one job.For any change you make, even $2.00, put it toward the debt.Apply for a 0% interest credit card and transfer your other credit card balances. Then throw every penny you have at the debt. At least with 0% the balance won’t keep growing. This requires good credit, which again, can be a challenge for people with lower income. Be careful. Usually a 0% interest rate is only for a short time (6 months, 10 months). You must be able to pay off the entire balance before the 0% period ends, otherwise you may be in a bigger mess. Whatever you do here, do not miss a payment.Do Not Use A Payday Lender! Let me say that again. Do Not Use A Payday Lender! Banks get you hooked to keep paying interest which is bad enough. Payday Lenders are incarnations of the devil. They lie, trick, mislead you, pile interest on top of interest and before you know it a small $200 loan to tie you till payday explodes into thousands of dollars with maybe no way out. Don’t Do It!Beware companies who will offer to help you get out of debt. These are often scams to take your money, not actually help you. The steps you have to take are for you to take, not someone else and especially not a company looking to make money off your situation.However you find or make the extra cash, put everything toward the debt. Don’t wait for the due date. Make multiple payments throughout the month, even if it’s just a few dollars. You are reducing the amount of interest you pay on top of the original amount (principle) for every bit you pay over the minimum payment. The sooner you pay, even in the same month, the fewer dollars in interest you’ll pay overall.Once you’ve paid off the debt, if the changes aren’t too extreme, start putting that extra into a savings account. Creating an emergency fund of $200, $500 or even $1000 can save you from having to use the credit card for an unexpected expense.Check out Dave Ramsey’s Snowball Method for getting out of debt. He’s hard core, but you’ll be glad you did.

50 Easy Ways To Make Money From HomeWhether you’re between jobs, a stay-at-home parent or just want to make some extra money without leaving the house, these work-from-home jobs and tasks can boost your income, helping you make ends meet, pay down debt or reach savings goals.Legitimate work-from-home jobs do exist but beware of scams that require you to pay upfront for the chance to earn extra money. Instead, check out these ways you can easily make extra money from home.1. Sell Stock PhotographsIf you have a knack for capturing the perfect shot, you could turn those pictures into extra money. Sites like Shutterstock, Fotolia and Adobe Stock enable users to upload images and get paid when people purchase them.You’ll receive a fraction of the sales price — and a good picture can earn you thousands of dollars if it’s downloaded a lot. You must have the exclusive rights to the photos, and you must include signed releases for any recognizable people or private property in the images.2. Use the Right Account for Your MoneyYou shouldn’t settle for any old checking account when you’re looking for somewhere to keep your money. Instead, you should find one that pays you back.PenFed’s Access America Checking account does just that thanks to its annual percentage yield of 0.20% or 0.40%1 — depending on the daily balance — with a monthly direct deposit of $500 or more. By using an account that pays a higher APY, your money will grow more quickly while it sits until you need it. And if you’re able to avoid monthly fees, there’s no reason not to take advantage of a perk like this.3. Pet SitIf you love animals, getting paid to watch other people’s pets is a dream job.Sites like Rover connect pet sitters with pet owners. You’ll need to set up a profile explaining why you’d be a great pet sitter, but once you’re approved, you can set your own rates and hours. You could earn up to $1,000 per month, according to Rover.4. Transcribe Audio ClipsIf you can type quickly and accurately, you can earn money by transcribing audio clips in your free time and turn it into a sweet side hustle. Companies like TranscribeMe! pay about $20 per hour, and top earners can earn $2,200 a month from these work-from-home jobs. If you have a specialized background like medical or legal training, you can earn higher rates.5. Sell Unused StuffIf you’re looking for quick cash, consider selling items around your house, including your CDs, DVDs, games or books on the site Decluttr. Just enter the barcode, and Decluttr will tell you how much it’ll pay you for it.6. Take Paid Surveys OnlineVarious online websites will pay you for sharing your opinions on a range of topics. For example, e-Rewards is open to anyone older than 13. You’ll earn e-Rewards currency for each survey you complete, which you can redeem for gift cards.Other options include GlobalTestMarket and Harris Poll Online. The amount you make depends on how many paid surveys you’re eligible for and how quickly you complete them.7. Become a Remote Sales AgentIf you have a smooth voice and like talking to customers, sign up as a sales agent. You’ll take calls like you would in a physical call center, but some sales agent positions are remote jobs.For example, you can sign up with the company LiveOps to take calls for 30-minute blocks. First, you must apply, be accepted and complete a company training course, which takes about two weeks. Depending on the job, you could be paid an average of 25 cents per minute and/or commission and receive incentives for selling certain products.8. Make an Online Business Out of Creating Online CoursesIf you have specialized knowledge, use it to create an online course. If you partner with a site like Udemy, you can set your price — between $20 and $200 per course — and keep a portion of the earnings based on whether you drive the traffic to the site or Udemy’s advertising attracts the students.9. Surf the InternetThere are dozens of ways to win money online. For example, companies want to know what you’re doing online, so they pay data aggregators like Nielsen to collect that information.To do this, Nielsen incentivizes people to share details about their computer and mobile phone usage by installing an app. You can earn rewards for each mobile device, plus sweepstakes entries. Nielsen gives away $10,000 each month to its Computer and Mobile Panel participants.10. Serve as an E-JurorYou can make extra cash by serving as a mock juror so attorneys can practice their arguments and judge the value of their cases. Sites like eJury recruit U.S. citizens over 18 who haven’t been convicted of a felony.You can’t be an attorney, paralegal or legal assistant — or closely related to an attorney or employed by a law firm. Expect to make between $5 and $10 for each verdict.11. Rent Out Your CarRenting out your car is one of the many ways you can make money off of tourists in your city. When you’re sitting at home, you’re not using your car, so consider making money from home by renting it to someone else. Companies like Getaround enable you to offer your car to someone who wants to rent it when you’re not using it.Getaround offers car owners top-rated insurance and 24/7 roadside assistance — so you’re fully protected. Active car owners can earn about $10,000 per year, according to Getaround.Smart Money Moves: Check Out How to Make a Passive Income Monthly12. Get Cash Back When You ShopSign up with Ebates to get cash back when you shop online. Ebates has negotiated deals with more than 2,500 companies.Each time you click through the Ebates site to partner sites, the company pays a referral fee to Ebates, and Ebates shares it with you. You can also earn $25 for each friend you refer to Ebates.13. Become an English Proficiency Test GraderTo test for English proficiency, foreign students take tests that include writing paragraphs, which need to be scored. Companies like EditFast need people to grade the tests, and you can earn between $18 and $25 per hour.You must be a native or native-like English speaker, have a four-year college degree, pass proficiency exams and complete the training.Then, after making this extra money, you can grow it even more by putting it in a checking account like the one from PenFed. With an APY that can pay up to 10 times1 more than the average checking account, it can do more for your money. If you’re looking for an easy way to improve your financial situation, don’t overlook something as simple as your checking account.14. Host Dinner for GuestsIf you like to cook — and others like to eat your food — you could make money by hosting dinners at your home. Companies like Eatwith coordinate guests for your dinner parties.You must apply and host a demo event so the company can verify your culinary and hosting abilities. If you’re accepted, you’ll be on your way to making up to $1,100 per dinner.15. Recycle for CashRecycling helps the Earth by reducing pollution, but it can also put some cash in your pocket. Some states implement a bottle deposit you can get back when you turn in the used bottles at a collection center. For example, in California, you can earn 5 cents for most glass and aluminum cans and 10 cents for 24-ounce or larger bottles.16. Watch Promotional VideosSome companies put together videos they want consumers to watch — and sites like InboxDollars find and reward consumers willing to do it. You’ll earn a little cash for each video you watch. If there aren’t any videos available to watch, InboxDollars also pays members to take surveys and online shop.17. Turn Your Home Into a Bed and BreakfastIf you don’t mind sharing your home with people, you can sign up to rent it to vacationers. On sites like Airbnb, you can list your space, set your rate and wait for guests to sign up. You have the flexibility to rent when you want and close up shop when you want your house to yourself.Smart Money Moves: Check Out How to Make a Passive Income Monthly18. Share Your Spending HistoryCompanies want to know what you’re spending money on. Snap pictures of your receipts, and upload them to the ReceiptPal app to earn entries into sweepstakes and points you can redeem for gift cards.19. Test WebsitesIf you like surfing the internet, consider becoming a website tester for UserTesting. Companies that are launching new sites will pay you to provide feedback about them and perform tasks to make sure they’re functioning properly. You can expect to make $10 for each website you review.20. Sell Coupons OnlineIf you have any coupons around you know you won’t use, someone else might be willing to pay for them. For example, if someone is planning to buy a new laptop, a 10-percent-off coupon could save them a substantial amount, which might motivate them to pay you a portion of what they’d save to get the coupon.EBay does have some restrictions on coupon sales, however. You can never sell coupons for free items, and you can sell only 25 coupons — or up to $100 worth — each month.21. Trade CryptocurrenciesCryptocurrencies are currencies electronically created and controlled in a decentralized manner instead of by a government. Types of cryptocurrencies include Bitcoin and Litecoin.Trading cryptocurrencies can be lucrative — Bitcoin went up considerably between January 2017 and December 2017. Trading cryptocurrencies has its risks. If the price plummets — as Bitcoin’s price has in the past — you could lose your investment.22. Create Slogans for CompaniesCompanies love catchy slogans because they help sell products. If you have a knack for coming up with creative sayings, enter slogan contests.At Slogan Slingers, companies offer a reward of between $200 and $999 for slogans. If a company selects your slogan as the winner, you keep the prize, minus a small administration fee.23. Lend Money to PeopleIf you have extra money, you can earn an average of 4% to 6% per year in profit by investing in peer-to-peer lending.Sites like LendingClub allow you to invest in small portions of loans — as little as $25 per loan — to other people. If the borrower defaults, however, you lose your investment.You must make a minimum opening deposit of $1,000 and meet the suitability requirements set by your state. For many states, that means you must have an annual income of at least $70,000 or a net worth of at least $250,000.24. Tutor Students OnlineIf you have a knack for explaining difficult subjects and helping students get better grades, consider tutoring online. You can find your own students and set your own rates to create an online business, or you can sign up to tutor with an existing company like Online Tutoring, Homework Help and Test Prep in Math, Science, and English.Online Tutoring, Homework Help and Test Prep in Math, Science, and English requires you to be at least a college sophomore, and you must be a subject matter expert in the areas you want to tutor. You must work at least five hours per week at Online Tutoring, Homework Help and Test Prep in Math, Science, and English. The site does not list the pay for tutors on its website, but with Chegg you can make $20 or more per hour of tutoring.25. Host Direct-Sales PartiesDirect sales companies like Mary Kay pay representatives to host parties and sell their products. You host events and invite friends, family and neighbors over to see and buy a company’s products — and you keep a portion of the sales. If you work for a single-level, direct-sales company, you can expect to earn an average commission of 20% to 25% of what you sell.26. Rent Out Office Space in Your HomeIf you have home office space you don’t need to use, it could be worth money to someone who wants an office outside of their home but doesn’t want the associated cost or inflexibility of a traditional office space lease. You can set your own prices and decide when and for how long you want to rent your space.27. Provide Tech Support OnlineIf you get excited about fixing computer problems, sign up to get rewarded for being tech-savvy. Through companies like Upwork, you can complete lucrative freelance gigs online to earn cash and rewards by helping people fix their technology products.Smart Money Moves: Check Out How to Make a Passive Income Monthly28. Search the Web With BingSwitching your search engine is an easy way to make money from home. Microsoft, for example, will reward you for using Bing to search the internet. You earn points for activities like searches, which you can redeem for movies, games and gift cards.29. Become a Virtual Fitness InstructorIf you like helping people get in shape but don’t like traveling to the gym or other people’s homes, consider marketing yourself as a virtual fitness instructor. You might need to get certifications to gain credibility with clients so you can oversee their workouts via webcam or other technology.Alternatively, you can have short, online meetings with clients and provide them with workouts to do on their own. Either way, you can work from home.30. Sell Your HairIf your friends tell you they wish they had your hair, you might have a source of income growing right on your head.Sites like HairSellon provide an easy way to make money from home: You can list your hair for sale, and the site even has a calculator to help you set a reasonable price depending on its length, thickness and color.31. Be a Virtual AssistantPeople will pay you to assist them with a range of tasks from canceling cable to scheduling appointments.“Virtual business assistance is an opportunity with so much variety and need that many people are able to find a place here,” said Angie Nelson of The Work At Home Wife. “In-demand skills can run the gamut from customer service and email management to optimizing eBay listings and setting up email funnels.”At Fancy Hands, the pay ranges from $3 to $7 per task — the faster you complete tasks, the higher your earning potential.32. Sign Up for Credit CardsCredit card companies want to get their cards in your hands, and they often offer substantial bonuses to sign up. Many sign-up bonuses for credit cards are in excess of $1,000 — but you might have to spend a certain amount in a short period of time to qualify. Check that the card’s annual fee doesn’t offset the sign-up bonus.33. Perform Tasks on Amazon’s Mechanical Turk WebsiteAmazon has created a huge marketplace for tasks that require human intelligence for completion: Amazon Mechanical Turk. Businesses post tasks and how much the pay is for completing them.Tasks include identifying pictures or videos, transcribing audio recordings and conducting research. Depending on the task, you might have to prove your qualifications before you can claim it. The faster you complete tasks, the more you can make.34. Adjust Your Home’s TemperatureYou can increase your bottom line by reducing your heating and cooling costs. Even if you’re always home, you can save up to 14% on your electricity bill if you set your thermostat 2 degrees higher and use a ceiling fan, according to Energy Star. You can also save money by dialing back the heat or air conditioning while you’re asleep.35. Make and Sell CraftsIf you’re a crafty person, selling some of your online handiwork might top your list of ways to make money at home. Sites like Etsy make it easy: You pay no monthly fee, just a 20-cent listing fee.Once your item sells, Etsy takes a 5% transaction fee, making selling you handmade creations and vintage goods in your Etsy shop, mostly painless.36. Sell Video Footage to News ShowsIf you often find yourself in the right place at the right time to capture big events, let your video camera roll. News shows will pay you to use the footage for their broadcasts. You can use a site like ScoopBroker to sell your footage to a media outlet for exclusive or nonexclusive rights to it.Smart Money Moves: Check Out How to Make a Passive Income Monthly37. Write a BookThanks to the advent of online publishing, you don’t need to have a connection with a big publishing house to deliver your story to the public. In fact, you can publish an e-book digitally through Amazon Kindle Direct Publishing. You can set your own price and earn up to 70% of it in royalty payments.38. Pay Your Car Insurance in FullInstead of relying on monthly payments, save up to $120 a year by paying your annual car insurance premium in full, according to Lifehacker. As long as your insurance company has a website, you can boost your bottom line from the comfort of your favorite chair.39. Empty Your ClosetIf you have a closet full of clothes that you rarely wear, resell those clothes and put some cash in your pocket.Sites like Tradesy allow you to list items that are in great condition as well as authentic. You won’t pay a listing fee, but you will pay a 19.8% commission on sold items totaling $50 or more and a flat fee of $7.50 on sold items totaling less than $50.40. Assist With Political Action CampaignsIf you’re a good communicator, consider putting your skills to work as a writer or organizer for political change as a way to make money from home. Sites like NextWave Advocacy recruit qualified applicants — often those with a background in writing who are interested in politics — and train them to work for clients on a range of political issues.41. Negotiate Your Interest RatesIf you have credit card balances, calling your credit card company to try to lower your interest rate works 80% of the time, according to CNBC. Even a small decrease in your rate can save you money.For example, say you carry a $10,000 balance: A 3% rate reduction would save you $300. Leverage how long you’ve been a customer and how you pay on time to increase your chances of success.42. Use an App To Find Price RebatesMany stores have price guarantees, but it’s a hassle to track them all down and potentially even more of a hassle to file the paperwork. Now, you can get price rebates from the comfort of your own home. For example, sign up for Paribus via email, and the service will track the rebates you’re owed by scanning the receipts sent to your email address. It will seek out the lower price and request a rebate on your behalf if you qualify.43. Review Computer SoftwareNobody wants to buy software only to find out it doesn’t work well. To help people avoid that disaster, you can write software reviews and get paid for them. SoftwareJudge will pay you up to $50 per review.44. Watch TVYou can make money from home watching TV: Download the Viggle app and earn one point for every minute you watch shows on subscription services like Netflix, Amazon and Hulu, plus bonuses for certain shows. You can redeem points for cash or gift cards.Although it might not be the most profitable activity, if you’re going to watch TV anyway, you might as well get rewarded with this easy way to make money from home.45. Answer Questions via TextIf you’re good at finding answers quickly, consider becoming a member at 1Q, a site that enables customers to ask questions and get answers quickly.After you’ve signed up, you’ll receive 50 cents per answer. The number of questions you receive depends on your demographics and location, so keep your profile updated so you don’t miss out on questions.46. Create an Online Business Translating Foreign DocumentsIf you speak more than one language, you can make money working from home translating documents. Freelance translators & Translation companies acts as a marketplace for translators to connect with people and companies who need translation services. On Freelance translators & Translation companies, clients request applications for translations and select the translator they want to conduct at-home jobs.47. Take Stock of Your MembershipsCutting unnecessary memberships is as valuable to your budget as generating extra income. Go through all of your current memberships and subscriptions to make sure they’re worth what you’re paying. To help find lurking expenses, consider an app like Trim, which shows your recurring costs and can even cancel subscriptions for you.48. Share Your KnowledgeIf you have specialized knowledge, you can monetize it by signing up as an expert to help others online. For example, JustAnswer will pay you to share your expertise.You must apply for each category you feel you’re qualified to provide answers for, and you need to have a degree or certification in that area. The amount you earn depends on how in-demand your area of expertise is.49. Bet On Your Ability To Get In ShapeDid you know you can get paid to sweat? Getting healthy can help you win money by competing in health challenges. Sites like DietBet allow you to compete with others in weight loss challenges.You must upload pictures to verify your starting and finishing weight. You’ll pay an entry fee, but the fees go into a pot that everyone who meets the goal splits. You’ll never lose money as long as you meet your goal.50. Accept Packages for NeighborsIf you’ve ever missed a package, you know how difficult it can be to reschedule your delivery. That’s why people use eNeighbr to get packages accepted for them.If you’re going to be home anyway, consider signing up to receive packages for your neighbors. Packages will be sent directly to you, and the customer will pick them up. You can expect to make $3.50 per package.Smart Money Moves: Check Out How to Make a Passive Income Monthly

Here are some of the most common reasons why you might want a card with an annual fee:Bad or Limited Credit History: You don’t have the best credit history, so you may need to settle for a card with a fee that’s designed for poor or limited creditOffset the Fee with Spending Rewards: You’ll spend enough to offset the annual fee, earning more rewards than you could with a no-fee cardA Large Intro Bonus: It has a large introductory bonus for spending a certain amount in the first few months of account openingValuable Travel Perks: There are travel benefits that you want, like free hotel stays, airport lounge access, or membership in hotel and airline loyalty programsSpecial Card Features: It has a particular feature that you need, like the ability to transfer pointsA Downgrade Path (Product Change): Some cards allow you to downgrade to a lesser version, with the same account history and credit line but fewer rewards and benefitsWe’ll go over each of these reasons a bit, with examples showing how cards with annual fees can be worth the cost.Credit cards with annual fees are good for two basic types of people, with different credit histories and credit scores:People with bad or limited credit who need a card with an annual fee because they can’t be approved for anything elsePeople with good or excellent credit who are looking for rewards and benefits that are better than averageAnnual fees range from the fairly small, like $49, to the very large, like $550 or more. But many of them are about $100. Premium travel cards tend to have the highest fees. Some cards will waive the annual fee for the first year, giving you some time to see if you’ll use the card enough for it to be worth it.Before you apply for a card with an annual fee, check out our picks for the Best No Annual Fee Credit Cards. You might find something you really like! And in many cases, a no-fee card or two will make a good complement to a card with an annual fee, letting you maximize your reward spending.Bad or Limited Credit HistoryIf you have bad, limited, or no credit, your card options will be limited. Some credit card companies issue cards with annual fees as a method to help you build or rebuild your credit.These cards don’t come with great rewards or benefits, but they give you a chance to establish a positive payment record on your credit reports. Don’t expect to be showered with points or get valuable travel perks, because they aren’t the most exciting cards. They’re meant to help you get your credit on track.Secured credit cards are a type of card designed for building credit. They require a security deposit when you’re approved, which will fund your credit limit for the card. Some secured cards have an annual fee in addition to this deposit, although there are also several that don’t charge a fee.The Discover it® Secured (Review) is our pick for the best secured card. It has no annual fee, and actually offers some cash back rewards along with the opportunity to improve your credit scores.The Wells Fargo Secured Visa Card has a $25 annual fee, for example, which is quite small. But why would you pay this fee, when there are other options? You might want to because this credit card offers a very high possible credit limit compared to other secured cards, up to $10,000. But you’ll need to make a security deposit of that amount to get a credit line that high. And you’ll need a Wells Fargo checking or savings account to use this particular card.There are regular, unsecured credit cards with annual fees that are meant for people without the best credit. A good example is the Capital One® QuicksilverOne® Cash Rewards Credit Card(Review), which has a $39 annual fee. It’s a pretty simple rewards card, but Capital One, the issuer, designed it for people with about average credit (you may be approved even with poor credit scores, depending on other factors).And, of course, you can also find unsecured cards with no annual fees for average credit. But you might have a more difficult time being approved for these, compared to cards with fees.Offset the Annual Fee with Spending RewardsCards with annual fees offer better spending rewards than no-fee cards — i.e., more cash back or points per dollar. But that doesn’t mean they’ll always be more rewarding overall.When tallying up your total rewards for a given year, you need to subtract what you spent on the annual fee, if your card has one. This could put a big dent in your profits, depending on how much you spent on purchases.There’s an easy way to compare the value you’ll get from different cards at different spending levels. Consider these two hypothetical credit cards:Card A has an annual fee of $100 and provides 2% cash back for all purchasesCard B has no annual fee and provides 1.5% cash back for all purchasesCard A has an annual fee but provides more cash back, while Card B has no fee and provides less cash back. Which card would be right for you, providing more overall cash back? The answer will depend on how much you spend each year.To offset the $100 fee of Card A, you would need to spend $5,000, earning at the 2% rate. That would completely offset the annual fee, leaving you at zero profit. That’s because $100 is 2% of $5,000.If you spent that same $5,000 with Card B, you’d only get $75 in cash back, earning at the 1.5% rate. But that would be all profit, because there’s no annual fee to pay.This shows how you’ll actually earn more profit overall with Card B if you just spend $5,000 per year, even though that credit card offers a lower cash back rate. You’ll always need to factor in annual fees like this when considering the value of a card.For Card A to be more rewarding you’d need to spend more than $20,000 per year, after subtracting the annual fee. This is the point at which Card A becomes more valuable to the cardholder. If you spend less than that per year, Card B is the more profitable choice.AMOUNT SPENT ANNUALLYCASH BACK EARNED (CARD A)CASH BACK EARNED (CARD B)$2,500-$50$37.50$5,000$0$75$10,000$100$150$20,000$300$300$30,000$500$450You can do calculations like this to compare any cards, to see how much value you’ll get at different spending levels.Remember that this process doesn’t take into account any of the other benefits that come with credit cards, like travel perks and shopping discounts. There are also introductory bonus offers available, which can provide tons of points or cash back. These are important, and shouldn’t be ignored when considering how to offset the annual fee of a card.Large Introductory BonusMany reward cards offer an introductory bonus, also called a signup bonus or new cardmember offer. This is usually a certain amount of cash back (or number of points), which you’ll get for spending a certain amount in the first few months.Cards with annual fees tend to come with bigger introductory bonuses. You pay more for the card, you get a better bonus, plain and simple.Take the Blue Cash Everyday® Card from American Express (Review), for example. It has no annual fee and provides a $150 cash bonus for spending $1,000 on purchases in the first 3 months after account opening. This is a 15% cash back equivalent, which is not too bad.Compare that to the upgraded version of the card, the Blue Cash Preferred® Card from American Express® (Review). It has a $95 annual fee and offers a $200 cash bonus for spending $1,000 in the first 3 months. This is a 20% cash back equivalent, which is obviously better than what you get with the Everyday card.You wouldn’t want to pick the Preferred version purely based on the introductory bonus, because it has that $95 annual fee to pay. Make sure you’ll also use the card enough to offset that fee every year with the cash back you earn from spending.Introductory bonus offers change over time, and in some cases you may see a special offer that other people aren’t currently getting. Some people try to use this to their advantage, waiting to apply for cards when the intro bonus is larger than usual. But there’s no guarantee that a larger bonus is coming soon, and sometimes people end up wasting their time waiting.Valuable Travel PerksTravelers love credit cards for the airline miles, hotel points, and many perks that are added on. Cards with high annual fees have more of these extra benefits, but these perks can go a long way towards offsetting those fees.In general, travel cards with high annual fees are better for people who travel frequently and spend quite a bit of money throughout the year on trips.They come with benefits which include discounts on travel bookings, airline and hotel travel credits, access to airport lounges, free checked bags, hotel member statuses, and many more. There are general travel cards, which are good for spending with any airline or hotel. And there are also cards that are co-branded with specific airlines and hotels, which provide brand-specific rewards and benefits.Let’s look at one general travel card that’s renowned for its perks, the Platinum Card® from American Express (Review). At $550 per year, many people would immediately decide that this card is out of bounds. But if you can make good use of its benefits you can get far more than $550 in value per year.Check out some of this card’s features, and how much value you can get from them:Annual Airline Credit: $200 per yearFee Credit for Global Entry ($100) or TSA Pre✓ ($85): Once every four years, so maximum of $25 per yearAnnual Uber Credits: $200 per yearFine Hotels & Resorts Collection: $75 hotel credit per visit, plus complimentary breakfast for two, WiFi, and moreComplimentary Boingo WiFi Access: $468 per yearComplimentary Airport Lounge Access: Intangible valueStarwood Preferred Guest Gold Member Status: Intangible valueHilton Honors Gold Member Status: Intangible valueLowest Hotel Rates Guarantee: Intangible valueThese benefits can be valued very high, and this doesn’t even include everything you get with the Platinum card.As you can see, you’ll get $420 in value per year from the first three credits mentioned. The $75 hotel credit can be used for every eligible two-night stay, so with several bookings per year you could easily get hundreds of dollars in value from that perk alone. You have Boingo WiFi access, which is normally quite expensive but it may not be very useful to some people, so you might not value it very highly.Then there are the intangible benefits, like airport lounge access and Gold member status at SPG and Hilton. We’ll just go over the lounge access here, but you can read more about those hotel member status perks in our review.The Amex Platinum is the best credit card if you want to relax at the airport because it provides complimentary access to a very wide selection of lounges, more than any other card: Centurion Lounges, Delta Sky Club, Escape Lounges, Airspace Lounges, and Priority Pass Select. It’s difficult to calculate how much value you can get with this benefit, because it will depend in part on how many times you visit the lounges, and which lounges you visit. Some lounges offer a buffet of free food and drinks for example, basically providing a free meal with every visit, while others are more basic.Centurion Lounge access is only available to Platinum and Centurion Black Card (Review) users, so you can’t put a price on this membership. A one-year membership to Delta Sky Club is $495. A single visit to an Escape Lounge costs $40 per adult. Airspace Lounges cost a minimum of $20 per visit. And a one-year Priority Pass Select membership costs $99, with each lounge visit costing an additional $27.So airport lounges are definitely costly, but you get access to all of them with your Platinum card. You won’t need to pay the daily visit fees for lounges that require one, but your guests will need to pay.How much would you value this airport lounge access? It depends on how much you’ll use it, but high-end lounge visits aren’t cheap by any means.If you spend a lot of time in airports every year, this perk alone could make the $550 annual fee worth the cost. Then add in the airline credits, Uber credits, hotel credits, and other intangible benefits, which are worth many hundreds of dollars. We haven’t even mentioned all the points you’ll earn from spending with the card!It’s easy to see how the benefits you get from the Platinum card can outweigh the fee. But this is only true if you’ll travel enough throughout the year, using up the credits, hanging out in airport lounges, and enjoying your member status at hotels. Otherwise, if you’re not a frequent traveler, a card like this will only cost you money.Special Card FeaturesNot all credit cards are created equal. Some cards have features that others don’t, and sometimes you might need to pay an annual fee if you want a card that can do something in particular.CHIP-AND-PIN EMV CAPABILITYWhen traveling outside the U.S. it can be helpful to have a credit card with Chip-and-PIN EMV technology. This will allow you to use certain unattended terminals and kiosks, which may require a PIN to verify the transaction.Most cards issued in the U.S. come with basic Chip-and-Signature capability, but there are some with the PIN function as well.Barclays credit cards: all cards issued with both Chip-and-Signature and PIN capabilityCapital One credit cards: all cards issued as Chip-and-Signature, some cards are issued with PIN capabilityBank of America credit cards: all cards issued with Chip-and-Signature, and you can request a PIN for your cardSome of these cards have annual fees, while others don’t. Some of them might have foreign transaction fees, which won’t be good for traveling outside the country.Here’s an example from each issuer:CARDANNUAL FEEREWARDSBarclaycard Arrival Plus® World Elite Mastercard® (Review)$892X miles per dollar for every purchase60,000 bonus miles for spending $5,000 on purchases in the first 90 daysCapital One® Venture Rewards® Card (Review)$95, $0 the first year2X miles per dollar for every purchase50,000 bonus miles for spending $3,000 in the first 3 monthsBank of America® Travel Rewards (Review)$01.5X points per dollar for every purchase20,000 bonus points for spending $1,000 in the first 90 daysThere are also some no-fee card offers from credit unions that include Chip-and-PIN capability, like the PenFed Platinum Rewards Visa Signature Card.You can contact your card issuer to learn about the PIN functionality of your card, and what to do when making purchases outside the U.S.POINT TRANSFERSAnother useful feature is the ability to transfer points to hotel and airline loyalty programs. Chase, American Express, Citi, and Barclays allow this on some of their cards. Cards that are co-branded with airlines and hotels usually offer point transfers to a selection of partners.Point transfers can give you a better value for your points, compared to redeeming them with some normal method like paying for travel expenses or statement credits. The value you get with a transfer will depend on where you transfer the points and how you use them, so there’s no guarantee that you’ll always get a great deal. You may have to do some searching to find an offer that’s better than a normal redemption method.For example, the Chase Sapphire Preferred Card (Review) offers 2X Ultimate Rewards points on travel and dining purchases. Those points are normally worth 1.25 cents each, when redeemed for travel expenses through Chase Ultimate Rewards. That gives you a cash back equivalent of 2.5%.Or, you could transfer those points to an airline or hotel loyalty program, where you might get more cents per point. We’ve found transfers that provide a value of 1.6 cents per point, for an economy-class Southwest Airlines award flight. No doubt there are better deals available, too. In that case you get a cash back equivalent of 3.3%.Chase issues several cards that earn rewards in the form of Ultimate Rewards points, some with fees and some without. But only the cards with annual fees have the ability to transfer points.If you have multiple Chase cards, you can transfer rewards from a no-fee card to a different card that does allow point transfers. The Chase Freedom (Review) has no fee and earns 5X points in rotating categories, for example. Normally your points would be worth only 1 cent each with that card. But if you transfer those points to the Chase Sapphire Preferred, and then transfer them yet again to a loyalty program, you can get as much as 1.6 cents each or more. This is a great strategy for combining multiple Chase cards, but you’ll need at least one with an annual fee to do it.You don’t always need to pay a credit card annual fee for the privilege of point transfers. American Express and Citi both have some no-fee cards that allow point transfers, like the Amex EveryDay Card (Review) and the Citi ThankYou® Preferred Card (Review).You’ll find different loyalty partners among these issuers, and different transfer rates as well. Chase is favored by many for offering a consistent 1:1 transfer rate, but you may find better deals with the other issuers. Sometimes Amex will offer bonus points for certain transfers, and other credit card companies might too.A Downgrade Path (Product Change)Having a card with an annual fee isn’t a life sentence. There are many reasons why you might want to close a card with an annual fee. Here are some of the most common:Personal finances: Maybe you have less spending money than before, and you won’t be spending enough to warrant a card with a feePersonal lifestyle: You could start traveling with a different airline or shopping at different stores, and a different card would provide more valueChange in card terms and fees: Sometimes a card’s annual fee, foreign transaction fee, or other terms are changed by the issuer, and you no longer want to use itChange in card rewards or benefits: Credit card issuers occasionally change the way rewards are earned or redeemed, and the card may not be as profitable as beforeA better card offer is available: New cards come out all the time, and maybe there’s a much better card out there for youInstead of closing a card with an annual fee and applying for a new one, you may have another option. A downgrade, or product change, is a better option than closing your card because you’ll be able to keep your account history and credit limit.If you downgrade to a no-fee card you’ll keep the same account with that issuer, and usually the same card number too. The new card will have weaker rewards and fewer benefits, but you’ll no longer have to pay to keep it open.This is better for your credit scores than closing one card and opening a new one, for several reasons:No hard inquiry: You won’t get a hard inquiry on your credit reports, which would have had a slightly negative effectNo new account: You won’t have to open a new account, which would reduce the average age of your accounts, lowering your credit scoresSame account on credit reports: The original account will continue to age, increasing the average age of your accountsSame credit limit: You’ll keep the same credit limit rather than getting a new, probably smaller limit, which will be better for your credit utilizationYou’ll usually be able to keep any rewards you earned when you downgrade, rather than losing them like you would if a card is closed. Check with your issuer beforehand to make sure. Take note that if you downgrade you may lose certain redemption options, like point transfers with Chase cards as explained above.There’s one major downside to downgrading to a particular card instead of opening that card new: you won’t get any new cardmember offers, like introductory bonus points or cash back, or an intro APR. This could be a good reason not to downgrade, depending on your particular situation and card options.Typically, you need to wait one year after getting the card before you’ll be eligible for a downgrade.To see if you can downgrade one of your credit cards, simply call customer support and ask. You can do this by calling the number on the back of your card, or by checking our list of credit card company phone numbers for your issuer.Not all cards with annual fees have a downgrade path. Cards that are co-branded with airlines and hotels usually can’t be downgraded to non-branded cards. Business cards can’t be downgraded to regular consumer cards. And charge cards from American Express can’t be downgraded to regular credit cards.Here are some good no annual fee cards you can downgrade to, for several different card issuers.CHASE DOWNGRADE OPTIONSChase Freedom (Review)5% cash back in categories that rotate every 3 monthsChase Freedom Unlimited (Review)1.5% cash back for all purchasesChase Ink Business Cash (Review)5% cash back:at office supply storeson internet, cable, and phone services2% cash back:at gas stationsat restaurantsAMERICAN EXPRESS DOWNGRADE OPTIONSBlue Cash Everyday Credit Card (Review)3% cash back at grocery stores2% cash back at:gas stationsselect department storesAmex EveryDay Credit Card(Review)2X Membership Rewards points at:grocery storesAmex Travel20% point bonus for making 20 purchases per billing periodBlue for Business Plus Credit Card (Review)Business credit card2X Membership Rewards points for every purchase, up to $50,000 in spending per yearCITI DOWNGRADE OPTIONSCiti Double Cash Card (Review)2% cash back for every purchaseCiti ThankYou® Preferred Card (Review)2X ThankYou points on:diningentertainmentPoint transfer optionsCAPITAL ONE DOWNGRADE OPTIONSCapital One® Savor® Cash Rewards Card (Review)3% cash back on dining2% cash back on groceriesCapital One® Quicksilver® Cash Rewards Card (Review)1.5% cash back for every purchaseCapital One® VentureOne® Rewards Card (Review)1.25X miles for every purchaseCould You Do Better with a No Annual Fee Card?Many people could probably use a few credit cards at any one time, with most of those being no-fee cards. But having a card or two with an annual fee can give you access to better rewards and perks than you could otherwise get.I myself have a handful of cash back credit cards without annual fees, and just one with a fee, the Amex Blue Cash Preferred (Review). It gives me 6% cash back on groceries, better than any no-fee rewards credit card can provide.The right card (or cards) for you will always depend on your personal lifestyle and spending habits. In general, if you’re not going to use it very much, you should go for a card without an annual fee. It won’t cost you any money, and you won’t have to worry about getting enough value from it to warrant the cost.If you’ll spend quite a bit of money with your credit card, however, or want premium travel perks and other benefits, you’ll typically get more out of cards with annual fees. And if your credit isn’t very good, you may have to go with an annual fee card (although this isn’t always true — there are credit cards for bad credit without annual fees).You shouldn’t avoid cards because of their annual fees, but you shouldn’t just go with what looks like the best possible (most expensive) card either. The best card for you will give you exactly what you need for a reasonable price, whether that’s a way to build credit, a solid rewards program, or luxurious perks if you’re a frequent traveler.A credit card with an annual fee may seem a bit intimidating at first, especially if it’s several hundred dollars. But in many cases these cards actually don’t have to cost anything at all, if you can make good use of their rewards and benefits.Before applying for a card with a fee, check out our picks for the Best No Annual Fee Credit Cards. You might be surprised at the level of rewards and benefits you can get. Once you know what these base level, no-fee cards are like, you can start moving your way up the price range.Was this helpful?YESNOThe responses below are not provided or commissioned by bank advertisers. Responses have not been reviewed, approved or otherwise endorsed by bank advertisers. It is not the bank advertisers' responsibility to ensure all posts and/or questions are answered.The InsiderReview of the Kohl’s Charge CardBRENDAN HARKNESS | DEC 19, 2018The Kohl's Charge Card is a credit card popular for its rewards, but is it worth getting? Read our review to decide if this card is right for you.Read MoreWhat is UltraFICO? Giving You a Voice in Credit ScoringMICHELLE BLACK | DEC 17, 2018UltraFICO is a new credit scoring model set to take effect in 2019, giving consumers the ability to add financial information that may boost their scores.Read MoreAnnual Income for Credit Card Applications: Everything You Need to KnowSUSAN SHAIN | DEC 13, 2018How do you calculate your annual income for credit card applications? And do you have to tell the truth? Here's everything you need to know.Read MoreReceive Insider UpdatesJoin the Insider Newsletter to stay current on financial trends, credit tips & planning, and more. It’s absolutely free to sign up.SIGN UP NOWWe promise never to sell, rent, or otherwise solicit your personal information, ever.FollowTwitterYouTubeEmailFacebookBEST CREDIT CARDSCash BackTravelBalance Transfer0% Intro APRFair or Average CreditBad CreditNo Credit