Is it worth paying an annual fee on a credit card?
Varun Chauhan
Asked 13 Jun 2026
Most premium cards charge ₹5,000+ as annual fee. Are the rewards and lounge benefits worth it for someone whose monthly spend is around ₹40,000?
3 Answers
On the annual fee — most premium cards waive it if you spend ₹1.5L to ₹3L in the previous year. Wallet loads (Paytm, Amazon Pay balance) usually DON'T count. But utilities, fuel, and grocery do. Spend pattern matters more than absolute number.
I've been using this card for over a year now. In my experience, the rewards are decent but the real value is in the lounge access and the milestone benefits. Make sure to read the fine print on the welcome benefit — most banks only credit it after the first transaction, not on approval.
On credit limit increase: most banks auto-review every 6 months. If you use 30-70% of the limit and pay in full, you'll get an automatic increase. Don't call and ask for it explicitly — banks take it as a sign of credit hunger and sometimes lower the limit instead.
Your Answer
Sign in to post your answer and help the community.
Sign in to postWhy sign in? We moderate Q&A to keep it spam-free.