A credit card with an annual fee might have higher rewards rates and better perks when compared to a card without an annual fee. If you're looking for a more advanced credit card, consider one with a fee. However, a flat-rate credit card with no annual fee could be a good way to cover the gaps left by credit cards with multiple bonus categories. They also typically provide a less complicated experience, with some exceptions. In the end, it comes down to what you need for your individual spending habits and how the card will fit into your budget.