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If you have excellent credit and want to use the best credit card available to you, then you may be in the market for a premium credit card. These are cards that boast a wide range of rewards, perks and benefits, but require the payment of an annual fee that is more than $200. The rewards can be worth the fee, if you know how to use them.
What to Expect From a Premium Credit Card
High-end credit cards are known for lavishing account holders with a long list of features, beginning with rewards. Premium credit cards will typically offer rewards for spending in the form of points or miles rather than cash back. These may be airline miles or points with a hotel rewards program, or they could be points in a bank rewards program that can be transferred to airline miles or hotel rewards.
In addition, premium rewards credit cards will offer a host of travel insurance and purchase protection policies not found in less expensive cards. Finally, all of the premium reward credit cards offered membership in an airline lounge program, and some feature access to multiple airport lounge networks. Membership in airport lounge clubs typically cost $400-$500 by itself, so you can think paying the annual fee for these cards as the purchase of a lounge membership, with all of the other features and benefits of these card added for free.
Here are two credit cards with features premium credit cardholders want.
The Benefits: This card now goes above and beyond all other premium credit cards by offering lounge benefits not just for the primary cardholder, but for all authorized cardholders as well. When traveling on American airlines, cardholders receive their first checked bag free for themselves and up to eight additional people on their reservation. Cardholders also get to use the priority check-in areas at ticket counters and the expedited airport screening lanes, as well as priority boarding privileges. Furthermore, all cardholders including additional authorized users receive American Airlines Admirals Club membership for themselves and their immediate family members, or two guests. And since there is no additional charge to request cards for authorized users, you can offer lounge club membership to anyone you choose to add to your account. Just be aware that adding an authorized user to your account leaves you open to responsibility for any charges they incur using the card. (Full Disclosure: Citibank advertises on Credit.com, but that results in no preferential editorial treatment.)
Cardholders earn two AAdvantage miles per $1 spent on American Airlines purchase and one mile per dollar on all other purchases. You also receive a $100 statement credit every five years toward an application for the Global Entry program. Reach elite status sooner by earning 10,000 AAdvantage elite qualifying miles every year when you spend $40,000 on purchases.
The Costs: There is a $450 for this card and no foreign transaction fees. The APR is 17.24% - 25.24%* (Variable), depending on your credit standing.
The Benefits: The Mastercard® Black Card has a patented stainless steel card design. But this neat design isn’t the only thing that makes the card appealing. Cardholders get a whole range of benefits that don’t typically come with most credit cards. This card offers a luxury members-only magazine, a round-the-clock card concierge, and a luxury rewards program. Also, if you travel frequently, this card has a great rewards program-you get double the rewards points for purchases made on airfare. Each year, cardholders also receive a $100 credit toward qualifying airline purchases good toward airfare, baggage fees, and more. Members also annually receive a $100 credit toward a global entry application fee, as well as VIP access to over 1,000 airport lounges. Additionally, when cardholders purchase travel tickets with their card, they are covered by travel accident insurance for themselves and their families. The card also comes with a 1.5% cashback program. (Full Disclosure: Mastercard advertises on Credit.com, but that results in no preferential editorial treatment.)
The Costs: $495 for primary cardmember ($195 for each additional authorized user). 16.24% variable on purchases and balance transfers. The card also has no foreign transaction fees.
Editorial Disclaimer: The editorial content is not provided or commissioned by the credit card issuers. Opinions expressed here are author’s alone, not those of the credit card issuers, and have not been reviewed, approved or otherwise endorsed by the credit card issuers.
At publishing time, Citi AAdvantage Executive World Elite Mastercard and Mastercard Black Card are offered through Credit.com product pages, and Credit.com is compensated if our users apply for and ultimately sign up for any of these cards. However, this relationship does not result in any preferential editorial treatment.
Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have
changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.
This article last updated September 19th, 2017. It originally ran on November 8, 2016.