Credit Q&A: Does My Annual Fee Earn Rewards Points?

Q: I noticed my annual fee from my credit card appears directly on a billing statement once a year. I was curious, do I earn rewards points off of that fee after I pay it? 

A: You may want to double-check with your issuer, but if they’re in keeping with the trend, it’s highly unlikely.

As a Sukh Sahni, a spokesperson for Capital One pointed out, “rewards are only earned on the ‘spend’’ and an annual fee isn’t considered a purchase. 

American Express and Chase also confirmed that the fees associated with some of its credit cards don’t earn points. Discover cards actually don’t carry annual fees, and Citibank had not responded by press time whether the fees associated with its cards earn points. 

Keep in mind that while fees may not earn rewards points, there are plenty of rewards that don’t carry annual fees. You can find some of the better ones outlined in this MainStreet roundup!

Got a credit question? Email it to Skowronski.jeanine@thestreet.com or send a message to Jeanine on Twitter @JeanineSko and she will address it in a future Credit Q&A!