Premium credit cards offer numerous extra benefits, but users usually have to pay a relatively high annual fee. We will now reveal which cards are still worth the price-performance ratio.
Providers of premium credit cards often advertise many advantages and a wide range of services. This includes included insurance packages as well as discounts and sometimes extensive bonus programs or cashback options. Premium credit cards are often worthwhile, especially for frequent travelers, because in addition to discounted lounge access at airports, there are sometimes discounts when booking flights, hotels and rental cars. However, the range of benefits offered is wide and there is usually something for everyone – at least for those who have deeper pockets and are prepared to pay the often high annual fees.
This is what makes a premium credit card
Credit cards are initially of interest to anyone who wants to make cashless payments at home and abroad without any hassle. Credit cards are also often a must when traveling, as it is often impossible to book rental cars or hotels without them. Many credit cards are free. Premium credit cards offer additional services beyond the basic services of a normal credit card, ranging from insurance to discounts to bonus programs. Depending on the provider and the scope of benefits, premium cards cost you annual costs, which usually start at 50 euros and up. The premium cards are often shown as gold or platinum variants.
The Amex Platinum Card, for example, is a card that promises its users a whole range of benefits. However, with an annual fee of 720 euros, it is also the most expensive credit card from the provider American Express. In return, platinum card customers also receive a number of additional services. Amex is currently offering a welcome bonus of 65,000 Membership Rewards points for new customers, which can be used in a variety of ways.
Additional benefits of the American Express Platinum Card:
- You can choose between a starting balance of 230 euros or 65,000 Membership Rewards points
- A restaurant credit of 150 euros
- An online travel credit of 200 euros
- An entertainment credit of 120 euros
- A shopping credit of 90 euros
- A “SIXT ride” travel credit of 200 euros
- Free access to over 1,400 airport lounges
- Upgrades and status benefits on hotels, flights, events and more
- A premium insurance package
- A free Platinum additional card
The upgrade to the Platinum card can be worthwhile – at least if you actually use the advantages. Please also note: The current starting balance of 65,000 Membership Rewards points or 230 euros will only be paid out if 10,000 euros are spent with the card within the first six months. That’s a lot of money – and Amex is not accepted everywhere. “The decisive disadvantage is the relatively small number of acceptance points. Amex itself does not provide an exact number. However, compared to Visa and Mastercard, Amex is far behind,” writes the Handelsblatt. But according to its own information, Amex is continuing to expand its network and increasing the number of accepting merchants.
This is what premium credit cards offer their users
The bonus packages of a premium card with gold or platinum status often come with certain benefits, including:
- There are no fees when paying abroad: Many premium credit cards waive fees when withdrawing or paying abroad. But be careful: not everyone does that! For example, Amex still charges fees.
- Bonus programs: Bonus programs are also included in numerous premium credit cards. Customers collect points every time they use the card and can use them to, for example, get upgrades on flights, pay for purchases or book rental cars.
- Discounts: Premium credit card providers often offer their users discounts from partner service providers, such as restaurants, hotels, streaming providers or car rental companies.
- Cashback: There are also sometimes cashback options where customers can get part of the purchase price back when shopping online.
- Insurance: Certain insurance packages are often included, for example travel insurance, insurance when booking rental cars is often included, or shopping insurance.
The Barclays Platinum Double is a Visa and Mastercard in a double pack that offers many additional services and benefits, especially when shopping and traveling. There are no fees for withdrawals and foreign currencies. However, you cannot collect points or miles with this premium card.
The advantages of the Barclays Platinum Double:
- Travel insurance package included (trip interruption, trip cancellation and foreign travel health insurance)
- Fully comprehensive insurance when renting a rental car
- The warranty period for shopping is extended by one year
- Flexible repayment of the monthly bill, also in installments
- Travel reimbursement of five percent of the travel price
- Up to three free partner cards possible
What premium credit cards cost
In contrast to conventional credit cards, premium credit cards are quite expensive, but they also offer a wide range of benefits, although these vary greatly depending on the provider. For this reason, the costs for premium credit cards often differ significantly from one another. In principle, fees such as withdrawal fees and foreign currency fees are often eliminated with premium credit cards or are lower than with basic cards. Premium cards offer advantages, especially when used abroad. If you travel a lot and take advantage of the benefits, you can recoup the high annual fees – but potential customers should look in advance to see what they really need. Before concluding a credit card contract, it is important to take a close look at the conditions and the small print.
With its platinum card, Amex offers a particularly wide variety of additional services and has an extensive bonus program up its sleeve. In addition to the rather high annual fee of 720 euros, there is also a foreign transaction fee of two percent and a withdrawal fee of four percent. The Barclays Platinum Double, on the other hand, is significantly cheaper with an annual fee of 99 euros, but also offers significantly fewer additional services and miles and points cannot be collected. Further costs such as foreign transaction fees, foreign currency fees and withdrawal fees do not have to be paid.
Really take advantage of the benefits
The Platinum Card from American Express currently offers the most advantages; new customers in particular can currently get 65,000 points when they take out the card. However, this card is also one of the most expensive and those interested should definitely pay attention to the additional fees when paying and withdrawing money abroad. Other premium cards such as the Barclays Platinum Double are significantly cheaper, but the range of benefits and discounts is correspondingly smaller. So it’s important to calculate carefully and see which advantages you can really use. Only then is the sometimes high annual fee worth it.
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Source: Stern
