**Summary: Navigating the Rising Costs and Strategies for Premium Travel Credit Cards**
The world of premium travel credit cards is changing, and for many consumers, this could mean shelling out more money than ever before for the privilege of carrying a top-tier card in their wallet. Recent moves from major issuers have brought this reality into sharp focus: American Express has just unveiled the latest version of its flagship Platinum card, now with a staggering $895 annual fee—an increase from the previous $695. Similarly, JPMorgan Chase raised the annual fee for its Sapphire Reserve card earlier this summer, bumping it up to $795.
For many people, these rising costs prompt an important question: Are premium travel credit cards still worth it? Or is it better to opt for a less expensive rewards card, or even a no-annual-fee option? The answer, according to experts in the credit industry, is more nuanced than it may seem at first glance.
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**Why You Shouldn’t Automatically Avoid Cards with Annual Fees**
Brian Kelly, founder of The Points Guy, a website dedicated to maximizing points and miles, advises consumers not to immediately dismiss credit cards that charge annual fees. In his view, the value proposition of these cards often justifies the cost, especially for those who spend regularly in categories that earn bonus points. “Don’t go ‘no annual fee,’” Kelly explains. “I’m a big believer in cheaper is not better when it comes to credit cards.”
The rationale is simple: Most no-annual-fee cards offer paltry rewards compared to their fee-charging counterparts. For example, a card with a $95 annual fee might offer 2x points on dining and travel, along with other valuable perks, which can easily outweigh the fee if you use the card regularly. “For anyone who spends any amount of money, $95 a year for [a card] which is 2x on dining and travel, plus all the extra perks, is worth it,” Kelly says.
This doesn’t mean you should pay a fee for its own sake. Instead, it’s a matter of ensuring that the rewards and benefits you get from the card align with your spending habits and lifestyle. If they do, even a moderate annual fee can be a smart investment.
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**Choosing the Right Card for Your Lifestyle**
Selecting the right credit card starts with a careful review of your own spending patterns. Experts recommend that you take stock of where your money goes each month—do you dine out frequently, travel for work or leisure, spend heavily on groceries, or rack up significant gas bills? Many cards offer bonus rewards in one or more of these categories, so it pays to pick a card that matches your personal spending profile.
Just as important as choosing the right card initially is staying attuned to changes in your life and habits. Kelly observes that people are often slow to update their credit card choices as their circumstances evolve. Life events—getting married, having children, retiring, or even a shift in travel frequency—can all affect the value you get from a particular card. “People in general don’t change their cards as their lifestyle changes,” Kelly notes. “When people have kids, when people don’t travel much or travel more, or they’re retiring — they don’t switch their credit cards to suit their lifestyle.”
This inertia can cost you. If you’re holding onto a premium travel card but no longer travel as much, you may be overpaying for benefits you don’t use. Conversely, if your travel has increased, it might be time to consider upgrading to a card that offers better travel perks and protections.
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**Redeeming Points: Avoiding the Common Pitfalls**
Another area where cardholders often trip up is with the accumulation and redemption of points or miles. If you find yourself with a large, unused balance of rewards points, it might be a sign that your card isn’t working for you as well as it could be. Kelly suggests that you should “be able to say, this currency works for the way I redeem points.” If you are having trouble finding worthwhile ways to use your points, it may be time to consider a different card—or at least explore how you can make better use of your accumulated rewards.
It’s also a mistake to hoard points indefinitely in the hope of eventually redeeming them for a lavish trip or big-ticket item. Ted Rossman, a senior industry analyst at Bankrate, cautions that the value of