Premium credit cards are getting more expensive—3 ways to know if the annual fee is worth it
By Ryan Ermey
Copyright cnbc
Many premium travel credit cards aimed at wealthy customers now come with higher annual fees.
On Thursday, American Express unveiled long-awaited updates to its Platinum card, which now carries an $895 annual fee, a 29% bump from the current fee of $695. Amex says the card now comes with $3,500 in annual benefits — twice the level of the current card — mostly in the form of credits.
The move is the latest escalation in the luxury credit card arms race. Earlier this summer, JPMorgan Chase bumped the annual fee on its Sapphire Reserve by 45% to $795. The firm says cardholders can earn $2,700 in annual benefits.
These and other companies that offer top-tier, high-fee cards typically offer lower-cost versions that come with scaled back perks. If you’re in the market for a new card — or are just having sticker shock on one you have — figuring out which is right for you will require some introspection, says Brian Kelly, founder of The Points Guy.
“Everyone has to do a personal analysis,” he says. “You have to look at your travel patterns and the way you shop and do the math.”
Here are three things he says to focus on.
