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Premium travel credit cards come with a lot of benefits — if you travel a lot. For a frequent traveler, either business or leisure, you can more than make up that $500 annual fee for some of the most well-known luxury travel cards from Chase and American Express by taking advantage of free checked bags, travel insurance, lounge passes and more.
Having A Premium Travel Credit Card Worth It Now?
It doesn’t take a genius to recognize that these premium travel credit cards would be a little ridiculous for someone who travels maybe once per year. You just wouldn’t get the value.
So, what should you do now that it’s becoming more difficult for everyone to travel? For a lot of road warriors, their travel has been reduced significantly.
If it was worth it for you to have a premium travel credit card last year, is that still the case? Or is it time to downgrade and go with a card that comes with a cheaper price tag and benefits you can actually use during a pandemic?
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Benefits Your Card Is Offering
The good news is, many premium travel credit card issuers recognize that they’re not exactly offering as much value to their cardholders as they once were, as everyone’s stuck at home self-quarantining. In response, card issuers are expanding benefits and credits so that you can sometimes still get your money’s worth from that annual fee.
The Chase Sapphire Reserve® card is offering limited-time credits and perks to persuade cardholders to renew their cards at the same annual fee of $550. Chase Sapphire added benefits during coronavirus include credits at gas stations and grocery stores, extra points-earning abilities at grocery stores and via food delivery services, and credit just for renewing your card. Again, if someone was to take full advantage of these, they’d reap enough benefits to pay the $550 fee.
Related Article: Chase Sapphire Reserve vs American Express Platinum
So, the short of it is — you’ll want to look at the benefits your premium travel credit card is offering right now. What has the cardholder changed or adjusted to make it worth your while to pay your annual fee for the time being?
It may be the case entirely that it’s worth having a premium travel credit card right now, even if you don’t plan to travel anytime soon. It’s all going to come down to a case-by-case (or rather, card-by-card) basis.
Related Article: How Major Credit Card Providers Have Adjusted To COVID-19
Considerations Before Canceling Your Card
Of course, if you look at the benefits your premium travel credit card is offering and don’t feel like you’re getting the annual fee’s worth from it, there are a few other factors that may play into your decision to cancel or keep your premium travel credit card.
For example, if it’s really important to you that your credit score remains unaffected (here are some of the best places to get a free credit score check), you might not want to close out your card just yet. What you can do instead is a downgrade to a credit card from the same issuer. This allows you to keep your account number and keeps your credit score intact. At the same time, it allows you to dodge the annual fee that you feel isn’t quite worth it at the moment.
Related Article: Best No Annual Fee Travel Credit Cards
Should I Sign Up for a Premium Travel Credit Card Right Now?
What if you’re not considering whether you should keep a current premium travel credit card, but instead you’re wondering if you should maybe sign up for a new one?
In that instance, you’re again going to want to look at what the card is currently offering, particularly when it comes to a sign-up bonus. Some credit card issuers, like these Chase credit card promotions, are currently extending the amount of time in which you need to meet a spending level in order to earn a sign-up bonus. This might be reason enough for you to sign up.
Additionally, you’ll want to be sure you’ll be able to meet the minimum spend for the bonus. The card should also earn points or miles for the purchases you spend more on (like dining).
You’ll additionally want to consider your future travel plans. If you’re not traveling currently but you plan to as soon as possible, then you could very well benefit from one of these premium travel credit cards.
Related Article: Best Credit Cards for After Travel Restrictions Are Lifted
The Bottom Line — Is Having A Premium Travel Credit Card Worth It?
For the right person, a premium travel credit card is still very worth the cost of a high annual fee. It all depends on your spending habits and which card you’re considering keeping or signing up for, specifically. If you will be traveling soon or are able to responsibly take advantage of the bonuses offered from card-issuers, then a premium travel credit card is worth it.
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Chase Sapphire Preferred® Card
- Our best offer ever! Earn 100,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,250 when you redeem through Chase Ultimate Rewards®.
- Enjoy new benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining and 2X points on all other travel purchases, plus more.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 100,000 points are worth $1,250 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.
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Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airlines or hotel chain, and has not been reviewed, approved or otherwise endorsed by any of these entities.