A few weeks ago a reader shared a link to the no-annual fee Club Carlson credit card, which I had completely forgotten about. The no-fee card doesn’t appear on the promotional page with all the other Club Carlson cards, so I just assumed they had discontinued it. What makes this card so valuable is that despite having no annual fee, it comes with an annual free night certificate (after $10,000 spent) that can be redeemed at any U.S. Club Carlson property. I know, that’s a deal breaker for many people, but there are a few decent Club Carlson properties left in the U.S. and I know lots of people who put this free night to good use every year. The question a lot of readers posed in response to what I wrote about the no-fee card was how it stacked up against the non-premium version of the Club Carlson credit card, especially on a long-term basis.
The non-premium Club CarlsonS Rewards Visa Signature Card carries a $50 annual fee and includes the same recurring free night benefit, plus Club Carlson Silver status and 25,000 bonus points. Club Carlson Silver status may be completely useless, but what about the annual 25,000 bonus points? Many people value Club Carlson points at 0.4 cents each, which would make the 25,000 point bonus worth $100. It’s totally feasible to get $100 value out of a Category 2 Club Carlson award stay, which would totally offset the $50 annual fee.
The only negative part of downgrading to a no-fee Club Carlson card is that you’ll be earning fewer points for your spending. The Club Carlson Rewards Visa earns 3 points per $1 on all spending and 6 points per $1 at Club Carlson hotels. The no-fee version of the card earns 1 point per $1 on all spending and 3 points per $1 at Club Carlson hotels.
Similarly, the Club Carlson Premier Rewards Visa Signature Card offers a 40,000 point renewal bonus in addition to the free U.S. hotel night in exchange for a $75 annual fee. That 40,000 point sign-up bonus can be valued at $160, which is much more than the $75 annual fee. So if you’re considering whether it’s worth it to keep paying the $75 annual fee, just know that the value of the extra points earned as part of the renewal bonus does exceed the annual fee.
In theory, all of these Club Carlson cards are worth keeping. They all offer at least one free night for renewing the card, and the bonus points awarded are valued higher than the annual fee. If you’re someone who earns lots of free nights via credit card spending, you might want to stick to the Premier version of the card with its higher earning rate. If you don’t want to channel more than $10,000 worth of spending to a Club Carlson card, but still want to avoid paying an annual fee, then the no-fee Club Carlson card is a better option for you.
Which of the co-branded Club Carlson credit cards do you think are worth keeping long term?
[Image via Getty]