Premium credit cards are often marketed as the best tool for travelers, packed with features Airport lounge accessTravel credits, exclusive status and high earning rates. but with this annual fee This can reach up to almost $900, leaving many people wondering: are these cards really worth the cost?
The truth is, these cards can provide tremendous value – or you may end up paying more than they’re worth. It all depends on your travel habits, spending patterns and how much you will take advantage of what is offered.
Here’s how to tell if a premium card is worth a spot in your wallet.
Connected: Premium Credit Cards vs. Mid-tier Credit Cards: Which One Should You Get?
What are premium credit cards?
Before we get into the details, let’s take a moment to understand what a credit card premium is.
Premium credit cards represent the top tier of the rewards card ecosystem. These high-end cards typically come with hefty annual fees (ranging from $395 to nearly $900), but also offer an impressive array of perks. Thinking: Airport lounge accessExclusive hotel or airline status, generous statement credit, Enhanced travel safety And earn quick points.
They’re designed for frequent travelers and big spenders who can maximize the value of the benefits. But premium doesn’t mean one size fits all; What is valuable to one cardholder may not be valuable to another.
Some of the most popular premium credit cards on the market include:
Reward your inbox with the TPG Daily newsletter
Join over 700,000 readers for breaking news, in-depth guides and exclusive deals from TPG’s experts
When a Premium Credit Card is Worth the Annual Fee
When are premium credit cards worth the fee? Here are some signs that a premium credit card may be in your wallet.
You will use statement credit
Many premium cards make it surprisingly easy to offset most (if not all) of your annual fee. narration credit alone. But these credits only have value if you actually use them.
For example, Chase Sapphire Reserve Offers up to $300 annual travel credit It automatically applies to a wide range of purchases, from airfare and hotels to parking and tolls.
amex platinum goes even further, offer lots of creditInvolved airline fee creditMonthly uber cash and narration credit Digital Entertainment Subscriptions,
If those credits match your lifestyle, your annual fee can easily pay for itself. But if you won’t use them — say, you rarely use ride-hailing services or don’t stay in hotels often — then the value quickly disappears.
You value airport lounge access and travel amenities
For many travelers, access to airport lounges alone may make a premium card worth having. amex platinum Provides the widest access including the above cards Centurion Lounge, Delta Sky Club (when flying Delta) and Priority Pass Lounge (Enrolment required).
Citi/AA Executive World Elite Mastercard And united club card Both come with unlimited access to their respective airline lounges, which is a huge benefit if you fly regularly American Airlines Or United Airlines,
If you’re someone who spends hours at airports every month, these perks can easily outweigh the annual fee. However, if you only travel once or twice a year, it may be better to opt for a lower tier travel rewards cardas if Citi Strata Premier® Card (Look Rates and Fees) instead.
Connected: Is the Amex Platinum worth the annual fee?
You care about specific status and upgrades
Premium cards often offer automatic elite status With airline or hotel partners, which is a benefit that can make your travel experience even better.
For example, Hilton Honors Aspire complimentary included hilton diamond statusOffering complimentary breakfast, and room upgrades and late checkout (subject to availability). Marriott Bonvoy Brilliant automatically grants platinum elite status (And the way to higher levels is through spending).
Meanwhile, the premium Cobranded Airline Card like Citi/AA Executive World Elite Mastercard and this delta reserve Helps you spend towards status and moves you up the upgrade list.
If you fly regularly or stay in hotels, these amenities can provide hundreds (or even thousands) of dollars of added value each year.
Connected: Marriott elite status: what it is and how to earn it
You can maximize points earning and redemption
Premium cards offer higher earning rates and more flexible redemption options Genuine Travel Rewards Cards, Sapphire ReserveFor example, dining earns 3 points per dollar and dining earns 8 points per dollar. Chase Travel℠ Booking.
During this time, amex platinum Cardholders earn 5 points per dollar on flights booked directly with or through airlines American Express Travel® (up to $500,000 per calendar year, then 1 point per dollar), which is a high rate of return for frequent travelers.
If you are strategic about earning points and redeeming them Transferring them to airline or hotel partners or using them High-Value Travel Redemptionyou can easily Justify the annual fee,
For example, Chase Ultimate Rewards points can be transferred to programs like Air France-KLM Flying Blue And World of HyattWhere they can unlock significantly more value than simple cash-back redemptions.
This is especially true when a transfer bonus Is in the game. I recently took advantage of the 25% transfer bonus when booking a flight to Paris. The flight cost 18,750 Flying Blue miles, but thanks to the bonus, I only needed to transfer 15,000 Chase points to cover it.
Be strategic about how you earn and redeem points Maximizes your rewards (And helps offset the annual fee).
Connected: How to Maximize Earnings with the Chase Sapphire Reserve
When a Premium Credit Card Isn’t Worth the Annual Fee
Premium credit cards come packed with features, but those benefits only matter if you actually use them. For some cardholders, the higher annual fee may not make sense based on their spending or travel habits.
Here are some signs that a premium credit card may not be a good fit for you.
You will not use travel perks
After all, premium cards are designed for people who travel frequently. If your lifestyle doesn’t include regular flights, hotel stays or time spent in airports, many of these benefits will go unused.
You’ll probably be better off with a mid-tier travel card that still earns value points but has a lower annual fee, like Chase Sapphire Preferred® Card (Look Rates and Fees) – one of our favorites starter travel card Here at TPG – and one of the top cards in my wallet.
Connected: best credit cards
You don’t want to pay high annual fees
Premium card annual fees reach hundreds of dollars (and will likely soon be in the thousandsIf you can max out the credit, lounge access and transfer partners, those fees may be worth it, but if you don’t, the math may not add up.
If you want to keep your costs low, choose a card with no annual fee Citi Double Cash® Card (Look Rates and Fees) might be a better fit.
Connected: Best No Annual Fee Credit Cards
you like simple rewards
Premium cards often come with complex benefits, earning structures, and redemption options that can be overwhelming if you’re not deeply versed in the world of points and miles. If this sounds like you, a premium card may not be the best fit – although there are some exceptions.
For example, Capital One Venture X Offers one of the more straightforward earning structures, earning at least 2 miles per dollar on every purchase and 5-10 miles per dollar on travel booked. Capital One’s travel booking siteYou’ll still enjoy premium benefits like airport lounge access and travel protection without the need to remember bonus categories or monthly credits.
However, if you prefer to skip the premium tier and annual fee altogether Chase Freedom Unlimited® (Look Rates and Fees) is a strong option, earning at least 1.5% cashback on every purchase.
Connected: The best cash-back credit cards to add to your wallet
You don’t want to track multiple benefits
Between monthly credits, lounge entry rulesBonus categories and specific status requirements require some effort to maximize premium cards. If you don’t want to keep track of expiring credits or don’t want to rush to activate perks, you may not be getting full value from a premium card.
Instead, you can try a straightforward card like this one Wells Fargo Active Cash® Card (Look Rates and Fees), with no rotating categories and no travel credits to remember.
Connected: Best first credit card for beginners
ground level
Premium credit cards can definitely be worth the annual fee, but only if you take advantage of what they have to offer. frequent traveler Those who use statement credits, enjoy lounge access and maximize reward redemptions will easily come out ahead.
If those features suit your spending habits, consider a premium card like amex platinum, Chase Sapphire Reserve Or Hilton Aspire Can pay for itself year after year. But if you’re unlikely to use the benefits, consider this low cost option And save your money for your next trip instead.
Connected: Best Premium Credit Cards: A Side-by-Side Comparison
