Premium credit cards with high annual fees are becoming increasingly popular among high-income consumers and those with strong credit scores. However, not everyone needs these cards to reap their benefits.
The cost of premium cards has risen significantly in recent years. Citibank’s new card charges $595 per year, while American Express’ platinum card costs $695 and Chase’s premium card costs $795 annually. But for whom are these cards a good deal?
According to Brian Kelly, founder of The Points Guy, the key is not just about the annual fee but also what benefits you receive in return. For example, Chase Sapphire’s premium card offers $300 in free travel per year and lounge access for open bar and full meals. American Express’ credits can be redeemed at Saks or StubHub, providing additional value.
However, these cards are not ideal for everyone. High-interest rates and the need to pay off balances quickly make them less appealing. Additionally, some rewards programs have lower annual fees that offer similar benefits without the hefty price tag.
For consumers looking to open a premium credit card account, Kelly advises choosing a transferable points credit card with one of the big banks, such as Chase Sapphire or American Express Gold. These cards allow you to earn points that can be transferred to various airlines and hotels.
In summary, while premium credit cards may offer attractive benefits, it’s essential to carefully consider your individual needs and financial situation before signing up for one. By weighing the pros and cons and choosing a card that aligns with your travel habits and spending patterns, you can make informed decisions about which premium credit card is right for you.
Source: https://www.npr.org/2025/08/17/nx-s1-5501558/premium-credit-card-fees-are-rising-for-whom-are-these-cards-a-good-deal