Would you ever consider paying $450 or $550 annually for a credit card? Perhaps you should, as premium credit cards can offer exceptional value, even when compared to their soaring annual fees. In fact, the market for premium credit cards is extremely hot, with many of the major credit card issuers scrambling to introduce new products, and upgrade their old ones to remain competitive.
Let’s take a look at some of the premium credit cards on the market, and see if they really are worth their annual fees.
Chase Sapphire Reserve®
This card offers new applicants 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $900 toward travel when you redeem through Chase Ultimate Rewards®. It also includes a $300 annual travel credit as reimbursement for travel purchases charged to your card each account anniversary year. You earn 3X points on travel immediately after earning your $300 travel credit. You can also earn 3X points on dining at restaurants and 1 point per $1 spent on all other purchases. Points can be redeemed for 1.5 cents each towards travel reservations made through Chase, or transferred to points and miles with airline and hotel partners. You also get a Priority Pass™ Select membership that’s good for unlimited airport lounge access for you and all of your guests. There’s a $550 annual fee for this card. Enjoy not paying any foreign transaction fees when using this card.
Is it worth it? When you factor the $300 annual travel credit, the net cost of this card is just $250 per year. For most people, this will be worth it for the 3x points on travel and dining, the Priority Pass Select membership, and the additional value when redeeming points towards travel reservations.
The Platinum Card® from American Express
With this premium rewards card, new applicants earn 100,000 Membership Rewards points after spending $6,000 on purchases within their first 6 months of Card Membership. Benefits include up to $200 Uber Cash: Enjoy Uber VIP status and up to $200 in Uber savings on rides or eats orders in the US annually. Uber Cash and Uber VIP status available to Basic Card Member only. Get $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings with American Express Travel when you pay with your Platinum Card®. Learn More.
You earn 5x Membership Rewards® points for flights and hotels booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year and earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel. Points are worth about one cent each towards gift cards or travel reservations, but potentially more when transferred to airline miles. There’s a $695 annual fee for this card.
Delta SkyMiles® Reserve Business American Express Card
Earn 95,000 bonus miles after you spend $6,000 in purchases on your new Card in your first 6 months. You can also earn up to 60,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $30,000 in purchases on your Card in a calendar year, you can earn 15,000 MQMs up to four times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
Earn 3 Miles on every dollar spent on eligible purchases made directly with Delta. Terms and limitations apply.
Luxury Card™ Mastercard® Black Card™
This card offers 1.5% value from your purchases when redeemed for cash back, and 2% value when redeemed for airfare. Other benefits include a $100 annual airline credit toward qualifying airline purchases and a $100 Global Entry application fee credit. You also get a subscription to their Luxury Magazine and luxury gifts sent to you throughout the year. There’s a $495 annual fee for this card.
Is it worth it? Just based on the rewards alone, this card doesn’t appear to be worth the $495 annual fee. But this card is not about rewards, it’s about image. It includes a stainless steel and carbon card, and customers expect to be surprised by luxury gifts being sent to them throughout the year. If you value these kind of benefits over more tangible rewards, then this card can be worth it to you.
Editorial Disclaimer: Information in these articles is brought to you by CreditSoup. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles. The information is accurate to the best of our knowledge when posted; however, all credit card information is presented without warranty. Please check the issuer’s website for the most current information.