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Is a Premium Credit Card Really Worth It?

Written by Miranda Marquit on July 30, 2014 in Credit  |   No comments

When used responsibly, credit cards offer a great way for you to earn rewards, get cash back, and improve your finances. But with so many credit card options from which to choose, deciding on the best card for you can be a challenge. Should you…

is-a-premium-credit-card-really-worth-it

When used responsibly, credit cards offer a great way for you to earn rewards, get cash back, and improve your finances. But with so many credit card options from which to choose, deciding on the best card for you can be a challenge. Should you opt for a regular rewards credit card with no annual fee or a premium credit card with an annual fee that could be as much as $95?

Check out the perks offered by the premium card

Some airline-branded cards offer a free ticket once a year or the opportunity to purchase a companion ticket at a reduced rate. For example, if you can purchase a companion ticket for $99 instead of paying another $350 for your partner to fly, it would make the card worth the $95 annual fee. You can look at it as paying $194 (the $99 ticket plus the $95 annual fee) for your partner’s ticket, which would save you $156 overall.

Other perks, such as access to an airline’s lounge, free checked bags, free hotel stays, or discounts on concert tickets, can also be worth the annual fee. As long as you use those perks regularly, you will come out...

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