The market is getting flooded with luxury credit cards carrying $450+ annual fees. Many of these cards offer impressive benefits that far outweigh the annual fee…if you actually utilize them. For the average person who takes 1-2 trips a year, a “regular” rewards credit card is sufficient. In fact, those cards will offer more value than the high-end cards with benefits that you won’t use. What are some of these high-value credit cards? My picks are outlined below:
5 – Discover It Miles. The Discover It Miles card makes the list for several reasons. The card has no sign-up bonus, but offers the equivalent of 3% cash back during the first year. It also has no annual fee, yet comes with an annual $30 in-flight wifi credit. Not a huge amount, but I use mine every year. Plus, I treat my Discover It Miles card like a travel piggy bank – I’m able to generate hundreds of dollars worth of cash back every year and use them exclusively to cover travel expenses that I can’t use miles for.
4 – Chase Sapphire Reserve. I’m always on the fence about recommending the Sapphire Reserve to “regular” folks. What I like about the card is that the $300 annual travel credit isn’t restricted to airlines or a specific carrier. You can apply it to virtually any travel charge. In that regard, I do think most people will spend $300 on travel, making up for the $450 annual fee. The remaining $150 annual fee is still worth it because of the increased 3x earning rate on dining and travel, not to mention the ability to redeem points for 50% more value through the Ultimate Rewards Travel portal. Thus, I think the Sapphire Reserve card is one of the best out there in terms of value.
3 – Ritz Carlton Card. The Ritz Carlton card is pretty special because you can earn top-tier Platinum status by spending $75,000. The best part? That status can be matched to SPG and Marriott. Yes, Marriott and SPG are close to a complete merger, but this benefit is still pretty cool for the time being. Throw in a $300 annual travel credit, Global Entry application fee reimbursement, Priority Pass Select membership, $100 airline ticket discount and the $450 annual fee is totally worth the investment.
2 – Chase Iberia Plus Card. The Chase Iberia Plus card probably offers the most bang for your buck at the moment. The $95 annual fee isn’t waived the first year, but you definitely get your money’s worth. To start, you get 50,000 Avios after $3,000 spent in 3 months – plus another 25,000 Avios after you spend $10,000 in the first year. If you manage $20,000 worth of spend in that year, you get another 25,000 Avios. But that’s not even the best part: Every year, cardholders who spend $30,000 on the card get a $1,000 discount voucher on Iberia flights. Plus a 10% discount on Iberia flights.
1 – American Express Hilton Ascend. The Hilton Ascend has knocked it out of the park in so many ways. What other credit card gives you instant top-tier elite status without having to spend a dime or stay a single night at a hotel? Take it from someone who’s gotten upgraded on every single Hilton stay – elite status makes a difference. You’ll never have to pay for breakfast, lounge access, and in some cases a room upgrade again. Remarkably, there’s more: A $250 annual airline fee credit, $250 Hilton Resort credit, $100 credit on 2-night stays, and two free weekend nights when you spend $60,000 in a year. This is a card that definitely earns its keep.
Which of these credit cards do you think offers the most value for the annual fee?
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