An annual fee is not good or bad — it is a price. The only question is whether you got more value than you paid. Most people answer from gut feeling. Do not.
Step one: add up what the card actually gave you in the last twelve months. Count credits you really used, the dollar value of points earned, and free nights redeemed. Ignore benefits you "might" use — only what happened.
Step two: compare against the fee. If value minus fee is clearly positive, keep it. If it is close, check the downgrade path — most issuers let you switch to a no-fee version and keep your account history.
Step three: time it right. Downgrade or cancel after the fee posts and you have used the annual credits, not before. And never cancel your oldest card lightly — account age matters for your credit score.
One more thing: do this review a month before the fee hits, not the day after. A calendar reminder turns a stressful surprise into a calm decision. That is the whole trick.