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Opinions on credit cards with annual fees? (lemmy.ca)
submitted 1 year ago by [email protected] to c/[email protected]
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I saw this card (https://www.scotiabank.com/ca/en/personal/credit-cards/visa/momentum-infinite-card.html) offered by Scotiabank that offers 10% cash back on purchases within the first 3 mo up to $2k, and 4% regularly on groceries and recurring payments. From first glance, it looks really good, but at the same time, there's a $120 annual fee. Although, the first year has no fee.

I wonder if I could use it for the first year and then close or downgrade it afterward. Would my credit score take a substantial hit?

What's your general opinion on cards with annual fees? What benefits would it need for you to consider one?

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[-] [email protected] 1 points 1 year ago* (last edited 1 year ago)

My friend, you need to google "churning".

https://princeoftravel.com/newbie-guide/

I have 7 credit cards right now and cycle them regularly. Check /r/churningcanada for their credit card recommendation sticky thread.

To answer your question, no you wouldn't take a hit beyond the initial credit inquiry when you get the card. Just keep an eye on your rating with something like credit karma.

[-] [email protected] 0 points 1 year ago

I've heard of churning but I was told that it can ruin your credit score. How has 7 cards affected your acceptance rate?

[-] [email protected] 1 points 1 year ago

It doesn't. You take a tiny hit if someone does a hard inquiry, but it won't do anything major AS LONG AS YOU PAY YOUR SHIT OFF.

If you can pay your balance every month, go for it!

[-] [email protected] 1 points 1 year ago

My card has a $150 annual fee but I get like $800 in cash back per year. Pretty easy one to say yes to

[-] [email protected] 1 points 1 year ago

Your spending must be quite substantial! I'm genuinely curious to learn which credit card provides such impressive cash back rewards. Are there no annual maximum limits on the rewards?

this post was submitted on 29 Jun 2023
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