An annual fee isn't automatically bad — it's a trade. The question is whether the cash value of the rewards and benefits you'll actually use exceeds what you pay.

Add up the realistic value: rewards on your normal spending, plus credits, free nights, lounge access or insurance you'd genuinely use. If that total comfortably beats the fee, the card can pay for itself. If you're estimating generously to justify it, that's a sign to pass.

Also weigh a no-fee alternative. Sometimes a simple cash-back card returns more net value than a premium card whose perks don't fit your habits.