Credit cards with annual fees have typically been ushered out the door as a sweeping lousy idea. In reality, it depends on your spending habits (shocker).

Some of the perks offered can subsidize your spending habits without ushering you into new wasteful spending habits.

The only thing that matters is your current spending habits; before I get off my soapbox, I'll explain why this can help you get some perks for free!

Take the example below:

American Express Blue Cash Preferred - $95 Annual Fee

6% cash back at U.S. supermarkets on up to $6K in purchases (then 1%)

American Express Blue Cash Everyday - $0 Annual Fee

3% cash back at U.S. supermarkets on up to $6K in purchases (then 1%)

For this example, the determining factor in making the annual fee back from the cash-back option is if you see yourself for the Blue Cash Preferred Card. This comes down to a simple math problem:

Divide the cost of the card by the difference in offerings. Since we're only considering the US Supermarket rewards, we only have to divide the $95 by the difference between the two rewards rates, 6% and 3%. $95 / (6%-3%) = annual US supermarket bill for the Blue Cash Preferred Card to be worth the cost. $95 / 0.03 = $3,166.67 Annually; $263.89 Monthly.

Again, just for argument's sake, as long as you expect to spend at least $263.89 on average every month at US Supermarkets. It makes more financial sense for you to get the Blue Cash Preferred Card with the $95 Annual Fee. The only caveat is that we didn't fully consider all bonus categories across the two cards.

Everything you spend at US supermarkets (up to $500/mo on average) over the average $263.89 is paying you for doing the math.

Credit card rewards programs are one area that inflation does not obliterate. Credit card companies make more as the price of goods increases, and you make more since the rewards are tied to the cost of goods; it's a lollipop after the root canal. Not going to make it all alright, but it might make it a little easier.

When doing this for yourself, be sure to keep in mind all categories associated with the cards in comparison. Also, remember that Costco and SamsClub are not US supermarkets; they're considered Wholesale clubs; it's a whole different category.

If you don't shop at Wholesale clubs and are interested in the Blue Cash Preferred Card, Here's a link to apply!