In the past ten years, I’ve paid thousands of dollars in annual fees on credit cards. While it is a big number when I add them all up, it’s heavily offset by miles, points, statement credits, and even more intangible benefits that have given me far more than what I spent in value.
But for many friends, family, and colleagues that I chat with, paying an annual fee on a credit card is something they just aren’t interested in doing. The reason doesn’t really matter, but it usually is that they don’t see the value or just don’t want to spend the money. That is completely fair, as personal finance is, well… personal. Everyone has their reasons for the choices they make.
However, being ok with paying an annual fee or two on a credit card can put you in a better position, whether your goals are to earn more in rewards, travel more, travel better, or just better optimize your personal financial situation. For many credit cards, I view the annual fee as an investment, as I know I will receive far more back in value in several different forms, whether that is cash, travel, or benefits.
Below, I’ve shared my experience with getting started with credit cards that have annual fees and how Canadians can look to move past the mental roadblock of paying annual fees to ensure the cards in your wallet are right for you and that you are getting the most out of the value offered by your credit cards.
The Mental Block of Paying a Credit Card Annual Fee
When I was a student, my first-ever credit card was a basic TD Green Visa card. The card offered no rewards, but it had no annual fee, and I was really just looking to start building my credit history as I knew that would be important in the future. I knew nothing of miles and points, so I figured this was a good choice.
At this point in time, it didn’t make sense for me to hold a card that had an annual fee, as I wasn’t spending much as a student still living at home. That being said, if I knew what I know now, I would have looked into how to earn miles and points as a student, but hey, we all learn over time.
Many people start their credit card journey with a basic credit card that may offer some rewards and usually has no annual fee. Many people also stop here, not looking or understanding how to optimize their credit cards any further.
They might only hold one credit card with their main bank where their chequing account is, and may even have a mortgage or car loan with the same bank. Anecdotally, Canadians can be very financially complacent when it comes to the financial institutions they utilize.
I get it, because for many years, I was exactly that person to a degree. But personal finance isn’t as black and white as some make it out to be.
Paying for an annual fee on a credit card can be a questionable value proposition for many, as you might not be sure you will be able to receive at least that much in value from the card. Nor are all credit cards made equal, as while many offer outsized value, there are others that we would never recommend to our readers, as their value proposition is poor.
If this is where you are currently, and you still aren’t sure that you want to make the jump to paying an annual fee after reading this article, I would still highly recommend looking to optimize your wallet by examining your current credit cards and seeing if there is a new card that would be a better fit while still having no annual fees.
For example, the Rogers Red Mastercard or the Tangerine Money-Back World Mastercard are two of the best cards with no annual fees in Canada, where cardholders can still earn competitive cash back rewards on all purchases while paying no annual fees.
And maybe, in the future, you’ll find a credit card that aligns with your personal financial goals that has an annual fee. If you do, consider once again if you are ready to make the jump, as you look to move past the mental roadblock and into the world of paying your first annual fee.
Moving Into the Realm of Paying a Credit Card Annual Fee
If you are looking to move into the realm of paying your first annual fee, the best first step is to find a card where you can receive more value than what you will pay for the fee. Simply put, do the math, and see if it makes sense to add the card to your wallet.
Back in 2015, this was the WestJet RBC World Elite Mastercard for me, as I was traveling with friends for various music festivals in North America, and the WestJet companion voucher allowed us to heavily save on our economy tickets.
This was the first card that I ever paid an annual fee on, and with flying at least one round-trip on WestJet per year with two passengers, it helped me save hundreds annually, which was significantly less than what I was paying for the annual fee.
The WestJet RBC World Elite Mastercard offers a WestJet companion voucher on approval (with the ability to earn one each anniversary year through spending), plus a first free checked bag on WestJet flights.
Check out our WestJet RBC World Elite Mastercard review for more details.
70,000 WestJet points
$5,000
$700+
$139
Yes
Feb 4, 2026
Now, it’s not to say that the WestJet RBC World Elite Mastercard is the right first card for everyone, either. For my situation, at that point in my life, it made complete sense. These days, it would make less sense based on my travel patterns. But there is no shortage of cards that can make sense when it comes to paying an annual fee, since the value you receive will be far more than the initial cost.
For example, the Scotiabank Passport Visa Infinite card is one of my most popular recommendations as it comes with a welcome bonus of up to 60,000 Scene+ points for an annual fee of $150. Scene+ points are worth a maximum of 1 cent per point, so on the welcome bonus alone, you’ve made back the cost of the annual fee.
It gets even better, though, as the card also offers six airport lounge passes, no foreign transaction fees, and Avis Preferred Plus membership, in addition to several insurance coverages. Now, these are less tangible benefits which make it tough to place a dollar or value amount on them, but they are definitely worth quite a bit, particularly the lounge passes.
The Scotiabank Passport Visa Infinite Card offers benefits such as no foreign transaction fees and six annual complimentary airport lounge access passes.
Check out our Scotiabank Passport Visa Infinite card review for more details.
Earn when you apply through Frugal Flyer.
60,000 Scene+ points
$40,000
$750+
$150
No
Jul 1, 2026
The American Express Cobalt card is also one that I regularly recommend to individuals who have a high amount of grocery or restaurant spending. This card doesn’t tend to have a super notable welcome bonus, and the monthly $12.99 fee isn’t bad, but the real value comes with the bonus spending multiplier of 5x Membership Rewards points per dollar spent on all dining and grocery purchases, up to $2,500 per month.
American Express Membership Rewards points are one of the most valuable currencies, as they can be transferred to many popular frequent flyer and hotel loyalty programs, including Air Canada Aeroplan.
If your household spends a lot on groceries or dining out, and you want to maximize miles and points, the American Express Cobalt card is a great example of a situation where the annual fee you’ll pay is dwarfed by the value that the card can offer your life.
The American Express Cobalt Card gives cardholders the opportunity to earn 5x Membership Rewards on eligible restaurant, food delivery, and grocery store purchases.
Check out our American Express Cobalt card review for more details.
15,000 Membership Rewards points
$9,000
$300+
$191.88
Yes
–
However, if you are still on the fence, I think the best and lowest-risk way to try a card with an annual fee is to add one of the credit cards in Canada that currently offer a first-year fee waiver or rebate as part of their welcome bonus. We’ve captured our top 10 cards with the first-year annual fee currently waived in the table below:
| Credit Card | ||
|---|---|---|
 |
7,000 AIR MILES and $125 FlyerFunds Estimated value: $1,175 Ends Jun 1, 2026 |
|
 |
70,000 VIPorter points and $125 FlyerFunds Estimated value: $1,175 Ends Jan 31, 2026 |
|
 |
45,000 Aeroplan points Estimated value: $945 |
|
 |
40,000 Aeroplan points Estimated value: $840 |
|
 |
165,000 TD Rewards points Estimated value: $825 |
|
 |
100,000 BMO Rewards points and $125 FlyerFunds Estimated value: $795 Ends Oct 31, 2026 |
|
 |
35,000 Aventura points Estimated value: $770 |
|
 |
35,000 Aventura points Estimated value: $770 |
|
 |
40,000 VIPorter points and $100 FlyerFunds Estimated value: $700 Ends Jan 31, 2026 |
|
 |
$480 cash back and $125 FlyerFunds Estimated value: $605 Ends Oct 31, 2026 |
|
Then, you can personally explore and experience the benefits and rewards that the card can offer you with no risk during your first year. With the first-year annual fee waiver, you are guaranteed to receive more back in value since your upfront cost is zero.
When the anniversary comes up, you can decide if you want to keep the card or if not, consider downgrading it to a different card with no annual fee (where possible). Either way, ensure you understand all the perks and benefits you are afforded when getting a new card with an annual fee, to ensure you don’t miss out on everything you are entitled to.
If you want to jump into the deep end, you might want to learn more about how to choose a premium credit card, provided you are ok with paying an annual fee that can easily surpass $500. Paying these high annual fees can be worth it, as these cards offer many amazing benefits and can include things like unlimited airport lounge access or powerful travel credits, but you need to make sure you can fully utilize these benefits to get the most value out of the annual fee.
If you’ve recently been approved for a card that has an annual fee or have had one in your wallet for years, the next stage is moving into the realm of paying multiple annual fees.
Starting to Pay Multiple Credit Card Annual Fees
If you go deep with credit card rewards and more specifically, miles and points, you’ll eventually end up paying the annual fee on at least a few cards. Again, provided you are being smart about it and choosing the right cards, it can make complete sense from a value versus cost perspective.
When I think of situations where it makes sense to pay multiple annual fees, many cards that come to mind are long-term keeper cards.
For example, if you hold the American Express Marriott Bonvoy card year-over-year, you will receive an annual free night certificate worth 35,000 Marriott Bonvoy points and 15 elite qualifying nights towards Marriott Bonvoy elite status for an annual fee of only $120.
The Marriott Bonvoy American Express Card offers benefits that include an annual Marriott Bonvoy free night certificate and 15 elite qualifying nights towards Marriott Bonvoy elite status.
Check out our American Express Marriott Bonvoy card review for more details.
50,000 Marriott Bonvoy points
$1,500
$450+
$120
Yes
–
You can even sweeten the deal by also holding the American Express Marriott Bonvoy Business card as well for an additional free night certificate annually for an annual fee of $150. Holding both Marriott Bonvoy cards at the same time is no problem.
You might even find value in paying multiple annual fees to participate in several different loyalty programs. For example, if you want to collect Scene+ points by holding the Scotiabank Gold American Express card while also earning Aeroplan points from the TD® Aeroplan® Visa Infinite* Card, it makes sense to pay for the annual fees that you will incur by holding both cards if you will receive than that amount back in value.
Of course, you could also choose a Scene+ and an Aeroplan card that have less or no annual fee, but you’ll be missing out on higher earning rates and valuable benefits, so even though it is cheaper outright, it might not be the most frugal choice, because those cards that have annual fees are incredibly better overall choices.
If you want to dig deeper, Kirin wrote an excellent article sharing his opinion on several of the best credit card combinations in Canada. Whether you are searching for the best combination of cards or simply looking to earn more miles, points, or benefits, adding a new card to your wallet that has an annual fee is probably the best way to have the biggest impact on your travel goals.
Conclusion
I fully recognize that credit cards with annual fees aren’t for everyone, for several reasons. That’s ok, because personal finance is exactly that, personal.
However, I do hope this article has helped you examine your current mindset towards annual fees and look in your wallet to see if you can optimize your personal finance situation even further as you look to earn more rewards, save more money, and travel better.
Josh Bandura
Latest posts by Josh Bandura (see all)
- AIR MILES Card-Linked Offers: What You Need to Know - Jan 9, 2026
- New Scotiabank Credit Card Offers (January 2026) - Jan 2, 2026
- Best Credit Cards in Canada (January 2026) - Jan 1, 2026
- Best Bank Accounts in Canada (January 2026) - Jan 1, 2026
- Miles & Points in 2025: Year in Review - Dec 31, 2025