Harness Money

Premium credit cards offer a wide range of benefits, including travel rewards, airport lounge access, and purchase protection. However, they also come with high annual fees, which can range from $395 to $695 or more.

So, are premium credit cards with high annual fees worth the extra points?

It depends on your spending habits and how much you value the benefits they offer.

If you travel frequently and spend a lot of money on flights, hotels, and other travel expenses, then a premium credit card with travel rewards can be a great way to save money. For example, the Chase Sapphire Preferred® Card offers 2x points on travel and dining, and it comes with a welcome bonus of 60,000 points after you spend $4,000 on purchases in the first 3 months from account opening.

If you don’t travel as often, but you still want to earn points or miles, then a premium credit card with general rewards may be a better option. For example, the American Express® Gold Card offers 4x points on dining and supermarkets, and it comes with a welcome bonus of 60,000 points after you spend $4,000 on purchases in the first 6 months from account opening.

In addition to travel and general rewards, premium credit cards also offer a variety of other benefits, such as airport lounge access, purchase protection, and travel insurance. These benefits can be very valuable, but they may not be worth the annual fee for everyone.

So, how do you decide if a premium credit card with a high annual fee is worth it for you?

Here are a few things to consider:

• How much do you spend on travel and other eligible expenses? If you spend a lot of money on travel, then a premium credit card with travel rewards can save you a lot of money.
• How much value do you place on the card’s other benefits? Some premium credit cards offer airport lounge access, purchase protection, and travel insurance. These benefits can be very valuable, but they may not be worth the annual fee for everyone.
• Can you afford the annual fee? Premium credit cards can have annual fees of $395 to $695 or more. Make sure you can afford the annual fee before you apply for a card.

If you’re considering a premium credit card with a high annual fee, be sure to do your research and compare your options. There are many great premium credit cards available, so you’re sure to find one that’s right for you.

Here are some additional tips for navigating annual fees:

• Consider a no-annual-fee card if you don’t travel often or don’t value the benefits of a premium card.
• Look for cards with annual fees that are waived the first year. This can give you a chance to try out the card and see if it’s worth the annual fee before you have to pay it.
• Take advantage of welcome bonuses. Many premium credit cards offer generous welcome bonuses that can help you offset the annual fee.
• Use the card strategically. If you can maximize the card’s rewards and benefits, then the annual fee may be worth it.

Ultimately, the decision of whether or not to get a premium credit card with a high annual fee is a personal one. Do your research, compare your options, and choose the card that’s right for you.