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?
Personally, my spending is still too haywire for me to like annual fee cards. I don’t want to be forced (consciously or subconsciously) to spend more money just so I can break even on the annual fees. Not spending money will always be better than any % of cashback.
If you have consistently high spending (e.g. if you have kids), then maybe. But I still don’t like the idea of paying more money to get more money, since it invariably means you’re making money off of people who can’t pay high fees, or people in credit card debt.