Are premium credit cards worth it?

Jason Steele

October 30, 2017  •  4 Minute Read

Credit Cards

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. It also includes a $300 annual travel credit as reimbursement for travel purchases charged to your card each account anniversary year. You can also earn 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 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 other 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 80,000 Membership Rewards® Points after you spend $8,000 on eligible purchases on your new Card in your first 6 months of Card Membership. Benefits include up to $200 Uber Cash: Platinum Card® Members can get out and about and explore their local area with $15 in Uber Cash for US rides each month, plus a bonus $20 in December. That can be up to $200 in annual Uber savings. Simply download the Uber app and add your Platinum Card® to your Uber account to get started. Available to Basic Card Member only. Effective 11/8/2024, an Amex Card must be selected as the payment method for your Uber or Uber Eats transaction to redeem the Amex Uber Cash benefit. Get up to $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®. The Hotel Collection requires a minimum two-night stay.

You earn 5x Membership Rewards® Points for flights 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

For a limited time with the Delta SkyMiles® Reserve Business American Express Card you can earn 80,000 Bonus Miles after spending $10,000 in purchases on your new Card in your first 6 months of Card Membership. With this card you can also enjoy 3 miles per dollar on eligible Delta purchases. If your purchase qualifies for a category that has a higher mileage accelerator, only the higher accelerator will apply. You can also earn up to $10 back each month after using your enrolled Delta SkyMiles® Reserve Business American Express Card for U.S. rideshare purchases with select providers. Get closer to elevated Status next Medallion® Year with MQD Headstart and MQD Boost: receive $2,500 Medallion Qualification Dollars each Medallion Qualification Year and earn $1 MQD for each $10 on purchases with your Delta SkyMiles® Reserve Business American Express Card. Not a Medallion Member? Card Members with an eligible ticket will be added to the Complimentary Upgrade list, after Delta SkyMiles Medallion Members.

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 $100 in statement credits toward flight-related purchases including airline tickets, baggage fees, upgrades and more. Just pay for airline purchases with your Mastercard Black Card and we will automatically apply the credit to your account. That’s it. No need to activate or designate an airline. Get up to a $120 reimbursement for a Global Entry or TSA PreCheck® application fee. 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.