Premium credit cards are often promoted as the ultimate tool for travelers, offering perks like airport lounge access, travel points, elite status and higher yields. But with annual fees of nearly $900, many are wondering: Are these cards really worth the money?
The truth is, these cards can deliver tremendous value—or end up costing you more than they’re worth. It all depends on your travel habits, spending patterns and the extent to which you will take advantage of the services on offer.
Here’s how to tell if a premium card deserves a spot in your wallet.
Related: Premium Credit Cards vs. Mid-Level Credit Cards: Which One Should You Choose?
What is a good credit card?
Before we get into the details, let’s take a moment to understand the reasons for the premium on credit cards.
Premium credit cards represent the top layer 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 benefits. Think: airport lounge access, elite hotel or airline status, generous statement points, enhanced travel protections and accelerated point earning.
They’re designed for frequent travelers and big spenders who can maximize the value of their benefits. But high-end 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:
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When a premium credit card is worth the annual fee
When are premium credit card fees worth it? Here are some signs that you might have a premium credit card in your wallet.
You will use statement credits
Many premium cards make it easy to offset most, if not all, of the annual fee with just a statement credit. But these points are only valuable if you actually use them.
For example, Chase Sapphire Reserve Offers up to $300 in annual travel credits that are automatically applied toward purchases ranging from flights and hotels to parking and tolls.
this American Express Platinum Card Going a step further, a host of points are available, including points for airline fares, monthly Uber Cash, and bill points for digital entertainment subscriptions.
If the points fit your lifestyle, your annual fee can easily be recouped. But if you don’t use them—for example, you rarely use ride-hailing services or don’t check into hotels often—then the value quickly disappears.
You value airport lounge access and travel benefits
For many travelers, airport lounge access alone is enough to make a premium card worth keeping. this American Express Platinum Card Offers the most comprehensive access to the above cards, including access to Centurion Lounges, Delta Sky Clubs (when flying on Delta Air Lines) and Priority Pass Lounges (registration required).
this Citi/AA Executive World Elite Mastercard and United Club Card Both come with unlimited access to their respective airline’s lounges, which is a huge perk if you fly American or United frequently.
If you spend a few hours at the airport each month, these benefits easily outweigh the annual fee. However, if you only travel once or twice a year, it might be wiser to opt for a lower-tier travel rewards card, such as Citi Strata Premier® Card (See Rates and Fees).
Related: Is the American Express Platinum Card worth the annual fee?
You care about elite status and leveling up
Premium cards often automatically provide elite status with airline or hotel partners, a benefit that can further enhance your travel experience.
For example, Hilton Honors Aspire Includes free Hilton Diamond membership, free breakfast, room upgrades and late checkout (subject to availability). this Marriott Bonvoy Brilliant Hotel Automatically grants Platinum elite status (and a path to higher tiers through spending).
Meanwhile, premium co-branded airline cards, e.g. Citi/AA Executive World Elite Mastercard and Delta Reserve Helps you spend money to gain status and advance your upgrade list.
If you fly or stay in hotels regularly, these benefits can add hundreds (or even thousands) of dollars in added value each year.
RELATED: Marriott Elite Status: What It Is and How to Get It
Maximize how you earn and redeem points
Premium cards tend to offer higher earn rates and more flexible redemption options than lower-tier travel rewards cards. this Sapphire ReserveFor example, you can earn 3 points per $1 spent on dining and 8 points per $1 spent on Chase Travel℠ bookings.
at the same time, American Express Platinum Card Cardholders earn 5 points per dollar spent on flights booked directly with the airline or through American Express Travel® (up to $500,000 per calendar year, then 1 point per dollar), which is a great return for frequent flyers.
If you strategically earn and redeem points by transferring them to airline or hotel partners or using them for high-value travel redemptions, you 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 Hyatt, where they can provide more value than a simple cash back redemption.
This is especially true when transfer bonuses come into play. I recently took advantage of a 25% transfer bonus when I booked a flight to Paris. The flight cost 18,750 Flying Blue miles, but thanks to the bonus, I only had to transfer 15,000 Chase points to pay for it.
Being strategic about how you earn and redeem points can further expand your rewards (and help offset the annual fee).
Related: How to Maximize Returns with Chase Sapphire Reserve
When a premium credit card isn’t worth the annual fee
Premium credit cards come with a variety of benefits, but those benefits only matter if you actually use them. For some cardholders, a high annual fee simply doesn’t make sense based on their spending or travel habits.
Here are some signs that a premium credit card might not be right for you.
You will not be able to use travel benefits
Ultimately, premium cards are designed for people who travel frequently. If your lifestyle doesn’t include regular flights, hotel stays, or time spent at the airport, many of these benefits won’t be available.
You might be better off with a mid-range travel card that still earns great value points but has a lower annual fee, e.g. Chase Sapphire Preferred® Card (see rates and fees) – TPG One of our favorite entry-level travel cards – and one of the most popular cards in my wallet.
Related: Best Credit Cards
You don’t want to pay a high annual fee
Annual fees for premium cards can run into the hundreds of dollars (and may soon reach into the thousands). If you can maximize your points, lounge access, and transfer partners, the fees may be worth it, but if you don’t, the math may not work out.
If you want to keep costs down, there are no annual fee cards available, such as Citi Double Cash® Card (see Rates and Fees) may be more appropriate.
Related: Best No Annual Fee Credit Cards
You prefer simple rewards
Premium cards often have complex benefits, earning structures, and redemption options that can be overwhelming if you don’t have a deep understanding of the world of points and miles. If this sounds like you, a premium card might not be the best fit—although there are some exceptions.
For example, Capital One Venture You can still enjoy premium benefits like airport lounge access and travel protection without having to remember reward categories or monthly points.
However, if you wish to skip the premium package and annual fee entirely, Chasing Freedom® (see rates and fees) is a great option, earning at least 1.5% cash back on every purchase.
Related: The Best Cash Back Credit Cards to Add to Your Wallet
You don’t want to track multiple benefits
Between monthly points, lounge access rules, bonus categories, and elite status requirements, maxing out a premium card takes some effort. If you don’t want to monitor expiring points or jump through hoops to activate benefits, you may not get the full value from a premium card.
Instead, you could try using simple cards like Wells Fargo Active Cash® Card (See Rates and Fees), there are no rotating categories and no travel points to remember.
Related: The Best First Credit Cards for Beginners
bottom line
Premium credit cards are definitely worth paying the annual fee, but only if you take advantage of what they have to offer. Frequent travelers who use statement points, enjoy lounge access, and maximize reward redemptions will easily stand out.
If these benefits fit your spending habits, a premium card like this American Express Platinum Card, Chase Sapphire Reserve or Hilton Asbai Hotel It pays for itself year after year. But if you’re unlikely to use these benefits, consider lower-cost options and save money for your next trip.
Related: The best premium credit cards: Side-by-side comparison
