Why Should You Pay Your Credit Card’s Annual Fee?

Jehanne Teo

Jehanne Teo

Last updated 20 April, 2016


Do you know how to get 50+ miles per dollar spend? We show you how with this little-known air miles card tip.

If you love a good deal, chances are you already own a few credit cards—one to get you cashback, one to get you great dining discounts, and one to collect air miles. And if you own a credit card, chances are you’ve tried to talk your way out of paying the annual fee.

But when you chose your air miles credit card, did you consider the credit cards’ annual fee bonus gifts?

We’ve talked to a lot of credit cardholders (it’s our job to do so, after all), and the most common complaint we hear is the frustration they feel when their annual fees don’t get waived. But for some air miles cards, paying the annual fee is completely worth it.

The Biggest Perk of Paying Your Annual Fee

Most of the banks waive the first year annual fee and start charging for the second year on. But with some air miles credit cards, you’ll actually be getting a deal by paying the annual fees.

First, you’ll have to do a bit of shopping. Look at which credit cards offer welcome miles for paying annual fees.

Let’s take Citi PremierMiles Visa Card as an example. Paying the annual fees of S$192.60 will get you 10,000 bonus miles.

To accumulate 10,000 miles regularly in Singapore, you’ll have to spend S$8,333.33 as Citi rewards you with 1.2 miles per dollar spend locally. If you were to charge, S$2,000 on your card per month, you’ll take more than four months to get the same miles as if you were to just pay the annual fees.

If you think about it, you’re technically getting 51.21 miles per dollar spend. Sure, you don’t get any other purchases along with it, but you’re basically choosing time over money.

Also, according to FlyStayTravel, one KrisFlyer mile for long haul flights is equivalent to about S$0.025. If so, 10,000 miles should cost S$250. Short haul flights miles are valued at S$0.006 per mile.

If you were to pay your annual fees on this card, we reckon you’ll be getting an extremely good deal out of it.

What Other Air Miles Cards Offer Bonus Miles?

Not every air miles credit card offers bonus miles. But some of the most notable ones that do are DBS Altitude Visa Signature Card, ANZ Travel Visa Signature Card and Standard Chartered Visa Infinite Credit Card.

Credit Card

Annual Fees

Bonus Miles

Citi PremierMiles Visa CardS$192.6010,000
DBS Altitude Visa Signature CardS$192.6010,000
DBS Altitude American Express Signature CardS$192.6010,000
ANZ Travel Visa Signature CardS$200.0010,000
Standard Chartered Visa Infinite Credit CardS$588.5035,000*

*Only applicable for welcome gift, as this card requires you to pay the annual fees when you sign up.

So if you’re still unsure about which air miles credit card to apply for, you’ll want to consider annual fees and their bonus miles too. Paying your annual fee is a great way to accelerate your miles without spending beyond your means.

You can use SingSaver.com.sg's free comparison tools to find an air miles credit card.

Read This Next:

5 Credit Cards that Give Free Access to Airport Lounges

17 Genius Travel Hacks that Will Save You Serious Cash


Starting out as a lifestyle writer, Jehanne currently writes for SingSaver.com.sg about saving money in everyday situations.


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