American Express has unveiled a significant hike in the annual fees for its Platinum credit cards, affecting both consumer and business versions. The new annual fee will be $895, representing a 29% increase from the previous $695. This announcement comes at a time when premium travel rewards cards are seeing similar fee escalations across the industry. For instance, Chase Sapphire Reserve recently raised its annual fee to $795-an increase of 45% from its earlier cost of $550. Additionally, Citi’s new Strata Elite credit card is now priced at $595 annually.
As issuers raise fees, consumers are advised to evaluate whether these premium cards justify their costs. Ted Rossman, a senior industry analyst at Bankrate, notes, “Annual fees are not inherently bad; you just need to ensure you’re getting value.” However, maximizing the benefits has become increasingly challenging.
Experts agree that travel rewards cards may deliver little value for individuals carrying a balance month-to-month. “Any interest that you owe will easily diminish the value of any of these benefits,” warns Sally French, a travel expert at NerdWallet. With average credit card interest rates hovering around 20.13%—and premiums for travel cards often nearing 25% to 30%—those who frequently carry debt may find themselves at a disadvantage.
When deciding whether a travel credit card is worth the investment, consider if you prefer a broad travel card or a brand-specific option. Co-branded credit cards, linked to specific airlines or hotel chains, can provide enhanced benefits if you have loyalty to those brands. For instance, an airline-specific card may offer perks like free checked bags, priority boarding, and rewards for expenditures on that airline, but these perks are often limited to their specific network. If you’re an infrequent traveler or don’t often utilize a particular brand, general travel cards allow for more flexibility in earning and using rewards.
While many travel credit cards come with no annual fees, those that do typically range from $95 to over $500, depending on their benefits. Cards without fees may not provide rewards comparable to their paid counterparts. Regardless, both types usually offer similar perks, such as TSA PreCheck credits and substantial sign-on bonuses for meeting spending thresholds shortly after card activation.
To determine the best card for your needs, it’s essential to assess your travel habits and lifestyle. For those not traveling frequently, opting for a no-annual-fee card could be more suitable. However, frequent travelers who consistently use a particular airline may find value in a co-branded card. If you currently possess a card with a high annual fee but aren’t leveraging its benefits, consider downgrading to a less expensive or free option from your issuer. Rossman advises that this can help maintain your credit health, as closing a card may negatively impact your credit score.
As fees continue to rise across the credit card landscape, consumers must remain vigilant and thoughtful about their choices, ensuring that their selected card aligns with their financial habits and travel preferences.
Original Source: https://www.cnbc.com/2025/09/21/how-to-maximize-travel-credit-card-benefits-with-high-annual-fees.html
Category :
Tags:
Publish Date: 2025-09-21 17:00:00
