Think about dropping that credit card with the annual fee

The biggest months for adding and dropping credit cards are December and January, so now’s the time to make sure that $95 annual fee is really worth it.

Chances are, it’s not.

“Generally, for the average credit card holder, it is not likely they are going to use a card with a high annual fee enough to justify it,” said Matt Schulz, a credit card expert with Bankrate.com.

Here are some things to consider as you think about what cards to keep.

• Why pay an annual fee at all? Maybe because you have no choice: Some cards aimed at people with poor credit carry fees because these customers are considered high-risk.

But often cards with annual fees come with some kind of benefit that the user thinks is a good deal. There are dozens of cards issued by banks that allow users to earn frequent flier miles or points toward a free hotel stay. Others offer perks, like access to tickets before they are on sale to the broader public.

• If you must pay, make sure it’s worth it. Calculating the value of some credit card benefits, like ones that let you check a bag free on an airline, is straightforward. If you fly United and check a bag — $25 a pop, usually— more than four times a year, you have more than justified the $95 annual fee on Chase’s United Visa card.

Sometimes the perk is something a user wants bad enough to pay for it.

American Express’ Platinum Card charges a hefty $450 annual fee but includes $200 in fee credits toward a customer’s selected airline. The card also gives the user airport lounge access, and a day pass for an American Airlines or United lounge runs $50. “If I check a lot of bags, that card costs me $250, not $450,” said Edward Pizzarello, co-founder of insideflyer.com. “There’s also a value getting access to (American Express’) Centurion lounges.”

• You’re better off without one. Nearly all rewards credit cards require a large amount of a particular type of spending to justify the fee. If you’re not doing that, then you’re wasting money.

The best bet, usually, is a cash back card with no annual fee. You won’t be tempted to buy stuff that looks like a bargain if you buy it with points, but it may be stuff you don’t need.

• If all else fails, threaten to walk. The credit card industry is extremely competitive. Banks don’t want to lose your business.

Annual fees can be negotiated, both Schulz and Pizzarello said. Sometimes the company will reduce the fee or throw in an extra benefit, like a bundle of points, if a customer threatens to leave.

The worst that can happen: they say no. But don’t worry, there are plenty of other options out there.