Seeing a $550 annual fee on a credit card application can make you want to slam your laptop shut and keep using your old card. But what you might not realize is that many premium credit cards have extremely valuable perks.
Looking for a secure place to grow your savings? See our expert picks for the best FDIC-insured high-yield savings accounts available today – enjoy peace of mind with competitive rates.
If you use them right, high-end cards can unlock thousands of dollars in rewards, protections, and perks that more than make up for the fees.
Here’s why premium cards are worth considering — and how to know if one fits your lifestyle.
Premium perks to look out for
The best premium credit cards are loaded with benefits that go way beyond cash back or basic airline miles.
Here are a few perks typically found in today’s top cards:
-
Annual travel credits: These are often $200 to $400, and they can help cover flights, hotel stays, or rideshares
-
Airport lounge access: You can enjoy free snacks, drinks, or even full meals. Some lounges offer free massages, showers, wifi, and more. It makes flying way less miserable.
-
Credit for TSA PreCheck, Global Entry, or CLEAR: These programs help you get through airport security fast.
-
Elite hotel status: This can get you room upgrades, late checkout, included breakfasts, and welcome gifts when available.
-
Concierge services: Think of this like a personal assistant that can help solve problems or make arrangements while you’re traveling.
-
Travel insurance: These are protections you hope to never use, like rental car insurance, trip cancellation or interruption insurance, lost luggage insurance, etc.
-
Bonus points: Many top cards offer bigger rewards for specific spending categories — sometimes 3X, 5X, or more.
Check out this card as an example of one standout that includes nearly all of the above. If you’re someone who uses these benefits even a few times a year, you could be getting hundreds (or even thousands) in value, which more than covers the fee.
When a high annual fee is totally worth it
Here’s an example of how quickly perks can stack up and offset a high fee.
Say you’re eyeing a high-end travel card with a $395 annual fee. At first it seems steep. But then you plan on taking advantage of these perks throughout the year:
-
$300 annual travel credit. You book a flight to D.C. for a friend’s wedding.
-
Airport lounge access (two visits): About $100 value, relaxing and eating before your departure and return flight.
-
TSA PreCheck® credit: $78 value (good for five years) and you breeze through security
-
Hotel upgrade: $100 saved on one trip
-
Regular spending points: You earn 24,000 points (worth $240) by spending $2,000 per month on regular expenses throughout the year.
Added up, that’s a total value of $818 in perks — and you only took one trip! Subtracting the annual fee, that’s a net gain of $423 for the year.
If you travel a few times a year, it’s easy to see how a card like this could easily pay for itself (and then some). Explore all our top-rated premium credit cards for 2025 and see which fits your lifestyle.
Big first-year value with welcome bonuses
Another big draw for premium cards? They usually come with huge welcome bonuses!
These are often worth hundreds toward travel or in cash back, and they can wipe out the annual fee (and then some), especially in year one.
For example, if a card has a $695 annual fee, but the welcome bonus earns you $800, you’re already ahead $105 for the first year of ownership. That’s without even touching any perks.
So even if you’re not 100% sure whether a card’s going to be a long-term fit, choosing credit cards with top sign-up bonuses can make it easy to test-drive. The worst-case scenario is you enjoy the perks for a year or two and walk away while you’re still ahead. Best-case scenario is you find a gift that keeps on giving!
The bottom line
A premium credit card is like a membership. Yes, it’s a high-priced membership, but if you use all (or even just some) of the right benefits, the cost is justifiable.
Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.
