Points and miles news
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I’m so tired, just so tired.
In case you haven’t heard, a premium travel cards announced its annual fee is increasing to $795. That’s a 45% increase.
Sadly, this does not surprise me in the least. This increase is the latest in a trend of annual fee increases on credit cards, especially among premium travel credit cards.
Credit card annual fees are one of the few price increases that seem to defy the rules of inflation: The higher the annual fee, the more exclusive the card appears.
And don’t for a moment delude yourself into thinking this will be the last annual fee increase we’ll see: Another luxury travel card is getting a major overhaul later this year. While nothing is official yet, word on the street is we might see an annual fee close to $1,000.
This might be an unpopular opinion, but I think any conversation focused on credit card annual fees is shortsighted. Why? Because the most important metric to compare cards is the card’s ongoing APR, not its annual fee.
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The revamped card’s offerings:
If you’re not scared of the $795 annual fee, here are some of the card’s newest perks:
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New cardmember offer: New card members can earn 100,000 bonus points + $500 travel portal promo credit after you spend $5,000 on purchases in the first 3 months from account opening.
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Extra perks:
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Earns 4x points on flights and hotels booked direct, replacing 3x points on all travel
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Earns 8x points on bookings made through the card’s travel portal
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$300 annual dining credit
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$250 annual value through complimentary subscriptions to Apple TV+ and Apple Music
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$300 annual StubHub credit on concert and event tickets
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$120 in annual Lyft in-app credits, up to $10 monthly, plus 5x total points on eligible Lyft rides
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$300 annually in monthly DoorDash promos and complimentary DashPass membership worth $120 annually
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10x points on eligible Peloton equipment and accessory purchases and up to $120 in annual statement credits toward Peloton memberships
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Much-loved perks the card still offers:
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$300 annual travel credit – still the most flexible travel credit available
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$120 credit every four years toward Global Entry, TSA PreCheck®, or NEXUS
- Access to 1,300+ airport lounges worldwide, including premium club lounges
- A best-in-class suite of travel protections: trip delay, cancellation, baggage, car rental coverage, and more†
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My take:
As I told AFAR recently, these added benefits are only valuable if they are useful to you. If you want a card that awards you statement credit for a Global Entry application fee but don’t use Apple Music, then this card is probably not the best option for you.
As my friends at Going know, I currently don’t have a premium travel card in my wallet. I’m still skeptical of such a high annual fee, but here’s what I think about the card changes.
Of course, deciding whether a credit card is right for you is personal, so your pros and cons list should differ:
What I like:
- I like the additions of the Apple, Peloton, and StubHub statement credits. I already use these brands/platforms, so I find it valuable. But your mileage may vary.
- I like that the $300 annual travel credit remained the same. This is the old “if it’s not broken, don’t fix it” rule.
- I like the higher earning rates on direct bookings with flights and hotels.
What I don’t love:
- While earning 4x points on flights and hotels booked directly is an increase from the old earning rate of 3x points, I don’t love that all other travel purchases (including mass transit) decrease from 3x to 1x points per dollar.
- The laundry list of statement credits can be hard to track and maximize.
At the end of the day, if you find yourself debating whether a $245 increase is worth it, it’s probably not.
A note for existing cardholders: The amount of your next annual fee will be based on your renewal date. If your card anniversary is on or after October 26, 2025, you will be charged the higher annual fee; if your anniversary is before October 26, you’ll be charged the lower annual fee.
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†These benefits are available when you use your card. Restrictions, limitations, and exclusions apply. Most benefits are underwritten by unaffiliated insurance companies who are solely responsible for the administration and claims. There are specific time limits and documentation requirements. Once your account is opened, consult the Guide to Benefits, which includes a full explanation of coverages.
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With expert:
Kurt Adams
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Kurt Adams is the Points and Miles Expert for the Going travel app. As a personal finance expert with a deep understanding of credit card rewards and frequent flier programs, Kurt helps consumers navigate the intersection of money and travel. A graduate of Princeton, he lives in New York.
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A disclaimer about card names:
Due to the quirks of credit card compliance, we are sometimes not allowed to use the actual names of cards or certain banks in emails. This means we have to resort to using more generic language when talking about some credit cards.
We know this can be confusing or frustrating, but we encourage you to click through to our site, where we can name and talk more candidly about the cards and their benefits. While we are bound by the rules of credit card compliance, our mission will always be to put our readers first and help you travel better for less.
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