The latest development in the credit card saga has set the community abuzz with ideas on how to earn points and miles towards their next great destination. The release of the Chase Sapphire Reserve not only has frugal travelers excited about new ways to earn Ultimate Rewards points but has many considering if they could benefit from holding a top-tier credit card. Moreover, some are starting to question their relationship with other top tier cards, as paying a $450 annual fee on multiple cards can be very cost prohibitive.
Does every frugal traveler need a top-tier credit card? More importantly, who benefits most from a top-tier credit card? Although they may be tempting for the world of benefits they offer, travelers who do not take advantage of all their benefits may be leaving money on the table at the end of the year. Here are three types of travelers who should definitely consider holding at least one top-tier credit card in their wallet.
The Frequent International Traveler
There is a subset of us who seem to spend more time away than at home. These are the kind that think a fun weekend away is spent flying on a super low fare to Iceland while making vacation plans for the Seychelles entirely on points and miles.
Frequent international travelers may receive the complete value of the $450 annual fee from their credit card through points, benefits, or other means should definitely keep at least one in their possession. In addition to the value-added points earned from everyday spending, cardholders are often granted important travel insurance benefits for purchasing their trips with their cards or through the points earned from those cards.
For those who do not travel internationally as often, there are still a lot of good card options that provide plenty of benefit and valuable points. For example, the Premier Rewards Gold card from American Express awards double miles on gas, groceries, and restaurants and includes a $100 airline credit at an annual fee less than half the price of top-tier cards.
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Premier Rewards Gold Card from American Express
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$0 first year
$195 after first year |
25,000 Membership Rewards® After you spend $2,000 on purchases on your new Card in your first 3 months of Card Membership Read Review » |
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Premier Rewards Gold Card from American Express |
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The High Roller
There is a subset of traveler among us that will only fly in first class and stay at five-star hotels. Their tastes are accustomed to only the finest things in life, and nothing short of that will do. This traveler demands a card that will unlock doors and give them access to everything they want in life.
For the high roller who doesn’t mind spending their way into the front cabin, a top tier credit card may offer all of the excitement they require without jumping through the hoops of minimum stays or elite qualifying dollars. While some cards come with elite status at hotels and resorts, others offer access to luxury hotels or resort collections that offer benefits for booking with the selected credit card. In addition, the Platinum Card from American Express also comes with additional high-end benefits many people do not realize, including limousine and private jet access!
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The Platinum Card® from American Express
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$450 first year
$450 after first year |
40,000 points After you spend $3,000 on purchases on your new Card in your first 3 months Read Review » |
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The Platinum Card® from American Express |
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While not everyone can live in the top echelons of society, travelers who don’t care as much about the brass ring can still enjoy the finer things in life without a large fee. The American Express Hilton HHonors card comes with complimentary HHonors Silver status and bonus categories to earn points with no annual fee.
The King of all Benefits
Some travelers have their credit card spending down to a science. At any given time, they know which card makes the most points on which spends and know how to make the most of everything their card offers.
It is no secret that high-end cards come with a whole world of benefits of their own. These benefits run the gamut from unlocking upgrades and bonuses, to multiplying points through booking engines or points transfer opportunities. Travelers who take the time to go through each of these plans have an excellent opportunity to maximize their value and get every dollar back in annual fees.
For those who don’t have the time or interest to determine points values and maximize their profitability, reward cards still present a great opportunity to earn rewards. However, those travelers may spend their time more efficiently working towards cash back awards. The Wells Fargo Cash Wise Visa offers a 1.8 percent cash back rebate on purchases with Apple Pay or Android Pay, while the Citi Double Cash Card offers a total of two percent cash back.
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Wells Fargo Cash Wise Visa® Credit Card
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$0 first year
$0 after first year |
Enjoy 1.8% cash rewards on Android Pay™ or Apple Pay™ mobile wallet net purchases during the first 12 months from account opening Read Review » |
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Wells Fargo Cash Wise Visa® Credit Card |
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Citi® Double Cash Card
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$0 first year
$0 after first year |
No Sign-Up Bonus - Read Review » |
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Citi® Double Cash Card |
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While top-tier cards may be tempting to aspire to, they are not traveler’s only options when it comes to the points and miles game. Before jumping into the deep end, make sure a high-end card is right for your spending. There may be a better card with a lower annual fee that is better aligned to your travel style.
How do you determine which cards are right for you? Lend me your feedback and ideas in the comments below!
[Image via Getty]