Several years ago, I remember telling a client they should consider applying for a credit card with a $500 annual fee. Their reaction was immediate. “Why would anyone pay that much for a credit card?”
It’s a fair question. After all, for decades we’ve been conditioned to believe that annual fees are something to avoid. It’s been a decade since the Chase Sapphire Reserve launched to challenge the then-undisputed premium card at the time, American Express Platinum.
Note: This blog revolves around rewards information available as of August 2026. You should always review up-to-date rewards information at the time you are reading this.
Today, there is a full-on features race with some of the most popular premium cards charging almost $900 annually. At first glance, that sounds absurd when there are dozens of no-fee cards out there. In many cases, however, not only is it not absurd, it is advisable.
For me, a premium credit card produces thousands of dollars in value every year—not only because of the points it earns, but because of everything that comes with it. The key is understanding one simple truth: The annual fee is rarely the expensive part. Paying for benefits you never use is.
Think of a Premium Card as a Membership
People often compare premium credit cards based on their annual fees, but I think that’s the wrong comparison. A better analogy is a gym, club or golf membership. Nobody asks whether the membership fee is worth it in isolation. The real question is whether you will actually use the membership enough to justify belonging.
Premium credit cards work exactly the same way.
If you eat out regularly, shop online, travel a few times a year (or take one big trip), appreciate convenience, and are willing to spend a few minutes learning how the benefits work, these cards can easily pay for themselves. This describes a lot of our clients.
If you rarely travel or never remember to use the benefits, even a modest annual fee is probably money wasted. Go for a cash-back card, instead.
The Benefits Go Far Beyond Points
Today’s premium cards bundle together dozens of perks that many travelers already purchase separately, including airport lounge access, Global Entry or TSA PreCheck reimbursement, travel credits, hotel elite status, rental car insurance, trip interruption coverage, purchase protection, no foreign transaction fees, concierge services, and transferable rewards points.
Four Cards Worth Considering (as of August 2026)
American Express Platinum ($895 fee, current intro points offer: up to )
Best for luxury travelers willing to maximize numerous statement credits and premium lounge access or those who want access to premier events (think chefs, concerts, private experiences).
Other benefits include statement credits for airlines, Clear+, hotels, streaming, Global Entry/TSA PreCheck, Resy, Oura Ring and Uber.
Chase Sapphire Reserve ($795 fee, current intro points offer: up to 100,000)
This is my default recommendation for many travelers because of its flexible rewards ecosystem and outstanding travel protections.
In addition, this card gives users statement credits for hotels, travel, StubHub, AppleTV+/Apple Music, DoorDash, Global Entry/TSA PreCheck.
Capital One Venture X ($395 fee, current intro miles offer: up to 75,000)
Capital One’s offering is perhaps the best value proposition among premium cards thanks to a straightforward travel credit and anniversary bonus and low annual cost. Also, the lower fee means less work to achieve success.
Users also benefit from statement credits for bookings, anniversary bonuses and Global Entry/TSA PreCheck.
Citi Strata Elite ($595 fee, current intro points offer: up to 75,000)
The Strata Elite is recommended mainly for those already invested in Citi’s ThankYou Rewards ecosystem.
Other advantages include statement credits for hotels, Blacklane, travel, and Global Entry/TSA PreCheck.
Rather than asking which card earns the most points, ask yourself:
- Do I travel at least three or four times each year?
- Will I actually use airport lounges?
- Do I take advantage of premier experiences?
- Am I already paying for services these cards include?
- Will I remember to use the statement credits and benefits?
If the answer is yes to most of those questions, a premium card can easily justify its annual fee.
A Note on Miles
Clients often ask how much miles are worth. Rather than creating my own valuation model, I begin with The Points Guy’s monthly point valuations since they change as issuers de-value their programs. This is one of the best resources available for comparing cards, valuing rewards currencies, and understanding redemption strategies. Their writers are also users, which helps a lot.
The Bottom Line
The question is not whether a premium credit card costs too much. The question is whether you are taking advantage of what you are already paying for.
For households that travel regularly, value convenience, and are willing to take a moment to learn more about the benefits, today’s premium cards can provide exceptional value while making travel noticeably more enjoyable.
Don’t apply for a premium credit card because your neighbor has it. Apply because it fits the way you travel. Our team is well-versed in these card programs, so don’t hesitate to reach out for a conversation if you are thinking of signing up or switching.