6 Credit Card Perks That Make High Annual Fees Worth It

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You could get fantastic benefits for your credit card by paying higher annual fees.

Key points

  • Although not all credit cards have high annual fees, some do.
  • Many credit cards with expensive annual fees come loaded with valuable perks.
  • Dining and takeout credits, travel credits, and a generous sign-up bonus are a few examples of credit card perks that may be worth the cost.

Premium rewards credit cards are popular because, in addition to giving cardholders the opportunity to earn rewards, these cards usually come with attractive benefits.

But most top-tier rewards credit cards charge hefty annual fees. You can try to avoid the expensive annual fee because the cost seems daunting.

But for the right person, some perks are worth paying a hefty annual fee. If you’re considering getting a credit card with an expensive annual fee, you might find the following perks valuable – and it’s worth it.

1. Meal and takeaway credits

If you often dine out or frequently order takeout, have one of the best credit cards for restaurants and restaurants in your wallet can be beneficial. Some of these credit cards include monthly or annual meal credits. This advantage could make your next takeout order and your evening less expensive.

2. Hotel credits

Some credit cards with travel rewards include annual hotel credits, which could help stretch your vacation budget. For travelers who frequently book hotel stays, this is an attractive perk. Remember that you may need to use the card issuer’s booking portal or book with certain hotel brands to use these credits.

3. Entertainment Credits

Some credit cards include entertainment credits as a benefit. If you value entertainment and already pay for streaming services, this could be a big win for your wallet.

Many households subscribe to multiple streaming services, so credit card streaming services credits could help you keep more money in your pocket.

4. Generous sign-up bonus offers

Many credit cards with higher annual fees offer attractive sign-up bonus offers to eligible new cardholders. If you meet the required minimum spend, a sign-up bonus can be a great way to earn lots of points or miles quickly. This benefit can result in an expensive annual fee that is well worth the cost, especially in the first year of card ownership.

5. Travel credits

Some rewards credit cards come with annual travel credits. These credits are great for frequent flyers who value flexibility. Usually, you can use these credits for various travel expenses, such as hotel stays, airfare costs, and transportation costs.

If you have a premium credit card that includes annual travel credits, paying a higher annual fee may not seem so expensive anymore.

Here is an example : If your credit card’s annual fee is $550 and includes $300 in annual travel credits that you use quickly for expenses you planned to incur anyway, it will look like you’re only paying $250. annual fees.

6. Checked baggage allowance credits

If you don’t pack light when you travel, you may have to pay a fee to check your baggage, and airline baggage fees can add up quickly. You can save money without changing your packaging style by using a premium airline credit card or a travel card that includes airline baggage credits.

How to choose the right credit card for you

Before getting an annual fee card, you should consider your personal finance situation and determine which card fits your credit situation, spending habits and budget.

When looking at potential card options, remember to research the benefits offered. Some credit card perks may be worth the hefty annual fee.

However, not all card benefits are useful to everyone, so consider which card features best suit your lifestyle. If you’re looking for a new credit card, check out our list of best credit cards to learn more.

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